Export of cotton fabrics to Africa badly hit: TEXPROCIL

The Chairman of the Cotton Textiles Export Promotion Council (TEXPROCIL), R.K.Dalmia, has said that the removal of benefits on exports to African countries in the new Foreign Trade Policy 2015-20 has had a serious impact on the exports of value added products like cotton dyed, printed fabrics and made-ups to the region.

The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrip of two percent, three percent and five percent to exports of notified products to certain specified

countries.

Dalmia has stated that the scheme, however, does not include exports of value added and labour intensive products like cotton dyed and printed fabrics, and made-ups to different African Countries like Mauritania, Mali, Dar Es Salaam, Burkina Faso, Guinea Bissaou, Niger, Benin, Angola, Senegal, Togo, Ghana, Kenya and Tanzania which is a major blow to the exporters to the African region.

In the erstwhile Foreign Trade Policy 2009-14, exports of cotton fabrics and made ups to many African Countries were granted duty credit scrips at four percent of the FOB value of exports in general

and in some cases seven percent.

The overnight withdrawal of these benefits on exports of Cotton fabrics and made ups to African countries has put the exporters into a huge dilemma.

The Chairman of TEXPROCIL further pointed out that currently the share of textiles exports to African region is less than five percent and there is huge potential to increase this share if adequate export

benefits are extended.

He urged the Government to include exports of value added products like cotton dyed and printed fabrics and made-ups to African countries under the MEIS scheme as otherwise exports to Africa will be seriously affected.