Industry body welcomes revision of duty drawback rate for textile items
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The Southern India Mills Association (SIMA) Friday welcomed the increase in duty drawback rate for textile items by saying it would help exporters improve competitiveness especially in countries which are signatories to the Preferential Trade Agreement (PTA).
The Central government had on Thursday announced a marginal increase of the rate. In a press release here, SIMA chairman P Nataraj thanked Prime Minister Narendra Modi, Union Commerce & Industry Minister Suresh Prabhu and Textiles Minister Smriti Irani for revising the rate.
Also, the SIMA chairman lauded the removal of value cap for most of the items, which has been discouraging value addition. Though the duty drawback rate was increased from 1.2 per cent to 1.7 per cent for cotton yarn; from 1.3 per cent to 1.6 per cent for cotton fabric; and from 2 per cent to 2.6 per cent for made-ups, there was a marginal decrease in the rate for apparel items, Nataraj said.
Considering the continuous fall in export of garments, he said, the industry was hoping for an increase in the rate and the government could have at least continued the existing rate of duty drawback to sustain the existing level of exports.
(With inputs from agencies.)