SIMA hails remission of duties on export products for yarn and fabrics

“This would give impetus and opportunity for India to increase exports, convert the raw cotton being exported into value added products, increase foreign exchange and create jobs for several lakhs of people, apart from utilizing the surplus capacity already created both in the spinning and weaving sectors,” said Ashwin Chandran, chairman of SIMA, in a statement. 

Further, he said that cotton yarn and fabrics were hitherto eligible only for duty drawback and now on, the cotton yarn will get 3.8 per cent RoDTEP with a cap of Rs.11.40 per kilo and woven fabric of 4.3 per cent with a cap of Rs.3.4 per sq.metre. 

The SIMA stated that the knitted fabric has been given only 1 per cent and requested the government to review the rate based on modular RoDTEP calculation. 

“The knitted fabric made out of yarn should get higher benefit than the yarn which has been taken care in the case of woven fabric,” said Ashwin Chandran.