COIMBATORE: The Southern India Mills’ Association (SIMA) has appealed to the Union Government to withdraw the five per cent incentive announced for export of raw cotton.
The Centre has announced five per cent duty credit scrip for raw cotton exports with effect from April 1, 2008 to July 1, 2009. The benefit has been granted under the Special Agriculture and Village Industries Scheme (Gram Udyog Yojana).
Association chairman K. V. Srinivasan has said in a release that the export incentive for cotton was a blow to the domestic textile industry. Under this scheme, cotton exporters were entitled for duty credit scrip equivalent to five per cent freight on board (f.o.b.) value of exports.
The Government had increased the minimum support price by nearly 45 per cent for cotton this year. The domestic textile industry suffered additional costs towards transport and State levies too.
The Government was encouraging export of raw cotton and not value added products, he said.
Source : The Hindu