Trade policy may simplify duty refunds

Textiles Minister Dayanidhi Maran today said the forthcoming Foreign Trade Policy (FTP) was expected to simplify the process for refund of duties paid on inputs.

“I hope that these duty drawback issues and anomalies in refunds will be addressed in the FTP,” Maran said at the platinum jubilee celebration of the Southern Indian Mills Association.

Exporters have complained of procedural difficulties in getting refunds.

The FTP, which spells out the country’s export and import policies, will be unveiled on August 27. The $55-billion textiles sector has been severely hit by the slowdown in demand, mainly from the US and the EU.

Meanwhile, the textiles ministry has asked Cotton Corporation of India (CCI) to set up sales depots in Coimbatore and Madurai so that the yarn cost can be brought down by Rs 2 per kg.

“The CCI will set up sales depots in Tamil Nadu in the coming cotton season 2009-10 (October-September) to store bales from cotton-producing states like Gujarat and Maharashtra for sales to local mills,” said Maran.

Maran said the technical textiles segment, engaged in production of a specialised variant of the commodity used by industries, would play an important role in creating jobs.

“There is an immediate need to develop standards, capacities and conversion technologies for technical textiles,” he said.

He asked the industry to devise a new strategy to apprise various stakeholders, especially the institutional users, about application, investment potential and benefits of technical textiles.The technical textiles segment is expected to become a Rs 66,441-crore industry employing an additional 1.2 million workers by 2012.

Maran said there were signs of economic recovery abroad and exporters had pinned their hopes on Christmas orders.

“We will also concentrate on the US and the EU, our traditional markets. We are seeing some signs of recovery in the US, but, in Europe, recovery may take a little longer than anticipated,” he said. The ministry has advised exporters to explore new markets, including Japan and African countries.