Cotton textiles exports declined by 16.50 per cent during April 2019 to February 2020 to USD 9,405 million compared to USD 11,262 million in the same period of the previous financial year, the Textiles Export Promotion Council (TEXPROCIL) said in a statement.
Sharp declines were reported in major export markets like China (51 per cent), Bangladesh (23 per cent), Vietnam (18.5 per cent) and South Korea (28.46 per cent).
"There has been a consistent decline in exports of cotton yarn in almost all the months during April-February 2019-20, which has adversely affected the cotton spinning sector. On the other hand, the growth in exports of cotton fabrics and made-ups has also been marginal at 3.05 per cent,” TEXPROCIL chairman K V Srinivasan said.
Further, he pointed out that buyers in the US and EU, two top destinations for exports, are cancelling orders and many of them are increasingly invoking ''force majeure'' clauses within their contracts to halt payments.
Buyers of cotton yarn are insisting upon a steep price cut by 15-20 per cent adding to the problems of the cotton spinning sector, he said.
Therefore, since exporters are passing through unprecedented times which they have never faced in the past, the industry needs the government policy support, he added.
Srinivasan urged the government to include cotton yarn under the 3 per cent Interest Equalisation Scheme.
He also requested the government to cover cotton yarn and cotton fabrics under the present RoSCTL Scheme and the much awaited Refund of Duties and Taxes on Export Products (RoDTEP) Scheme.
"These schemes reimburse all the duties and taxes which are incurred during the production process and support the maxim of export of goods and not taxes. It would also enhance the overall competitiveness of the textile industry and give a fillip to India becoming a hub of fabric and yarn production in South and the South East to serve both the domestic and export markets,” he said.
TEXPROCIL urged the government to release all the pending claims under the ROSL and RoSCTL schemes to the exporters of made-ups and garments.
"All these measures will help exporters of cotton textiles to survive and sustain in exports which in turn also enable consumption of cotton, which has been procured and stocked by the Cotton Corporation of India in very large quantities," he added. PTI SM MKJ
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI