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Removal of benefits in foreign trade policy to hit exports, says TEXPROCIL |
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MUMBAI: Removal of benefits on exports to African countries in the new foreign trade policy will affect shipments of value added products like cotton dyed and printed fabrics, textile industry body said today.
"The new Foreign Trade Policy 2015-20 has removed all benefits on exports to African countries. This has had a serious impact on exports of value added products like cotton dyed and printed fabrics and made-ups to African countries," Cotton Textiles Export Promotion Council (TEXPROCIL) Chairman R K Dalmia said in a release issued here.
"We urge the government to include exports of value added products to African countries in the new Foreign Trade Policy 2015-20," Dalmia added.
The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrips of 2 per cent, 3 per cent and 5 per cent to exports of notified products to certain specified countries, he said.
However, Dalmia said, the scheme does not include exports of value added and labour intensive products like cotton dyed and printed fabrics and made-ups to different African countries like Mauritania, Mali, Dar Es Salaam, Burkina Faso, Guinea Bissaou, Niger, Benin, Angola, Senegal, Togo, Ghana, Kenya and Tanzania, which is a major blow to the exporters to the African region.
Earlier, in the Foreign Trade Policy 2009-14, exports of cotton fabrics and made ups to many African countries were granted duty credit scrips at 4 per cent of the Free On Board (FOB) value of exports in general and in some cases 7 per cent.
The withdrawal of these benefits on exports of cotton fabrics and made ups to African countries has put the exporters into a huge dilemma, he added.
He said the share of textiles exports to African region is less than 5 per cent and there is huge potential to increase this share if adequate export benefits are extended.
Source : economictimes.indiatimes.com
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