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SIMA lauds revision of duty drawback rate for textile items

Press Trust of India  |  Coimbatore 

: The Mills Association (SIMA) Friday welcomed the increase in duty drawback rate for textile items by saying it would help exporters improve competitiveness especially in countries which are signatories to the Preferential Trade Agreement (PTA).

The had on Thursday announced a marginal increase of the rate.

In a press release here, SIMA P Nataraj thanked Narendra Modi, Union Commerce & and Smriti Irani for revising the rate.

Also, the SIMA lauded the removal of value cap for most of the items, which has been discouraging value addition.

Though the duty drawback rate was increased from 1.2 per cent to 1.7 per cent for yarn; from 1.3 per cent to 1.6 per cent for fabric; and from 2 per cent to 2.6 per cent for made-ups, there was a marginal decrease in the rate for apparel items, Nataraj said.

Considering the continuous fall in export of garments, he said, the industry was hoping for increase in the rate and the government could have at least continued the existing rate of duty drawback to sustain the existing level of exports.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 22:11 IST