Govt may withdraw duty sop on cotton yarn exports soon

The government may soon withdraw the four per cent incentive on cotton yarn exports aimed at cooling its prices in the domestic market.

"The four per cent duty benefit to yarn exporters under the Duty Drawback scheme is likely to be withdrawn soon," a source told PTI, adding the government was also considering to impose export duty on cotton yarn.

On April 21, another export sop on yarn known as the Duty Entitlement Pass Book (DEPB) scheme was withdrawn.

Besides, the yarn exporters have been asked to register their dispatches with the Textile Commissioner.
    
Exporters can avail incentives either under the DEPB or Duty Drawback scheme.
    
With cotton and yarn prices moving north, Textiles Minister Dayanidhi Maran is understood to had met Finance Minister Pranab Mukherjee on April 21.
    
On April 6, an inter-ministerial meeting chaired by the Finance Minister had discussed ways to check cotton and yarn prices.
    
Cotton yarn prices have jumped by over 30 per cent in the past three months.