You are here: Home » PTI Stories » National » News
Business Standard

Texprocil seeks 5 pc duty cut for textile exports to China

Press Trust of India  |  Mumbai 

The Cotton Textiles Export Promotion Council (Texprocil) today said it has asked the ministry for higher incentives including 5 per cent duty reduction for exports to China.

"To boost cotton textile exports to China and Europe, we seek higher incentives. We have urged the ministry to seek 5 per cent duty reduction from the present 10 per cent for our fabrics and home textiles," Texprocil Chairman Manikam Ramaswami told reporters here.

Pakistan allows duty free import of textile machines from China and in return enjoys duty free access to fabric market in China.

China is the largest textile country, accounting for 30 per cent of global trade. China imports over USD 20 billion worth of cotton textiles of which India's share is only USD 3.5 billion, Ramaswami said.

India has a USD 32 billion trade deficit with China, in which USD 12 billion worth of imports are allowed to come into India either duty free or at concessional duties. India on the other hand has not obtained any reciprocal benefit.

The incentive will help us to put another USD 7 billion worth of fabrics and home textiles into China and reduce our trade deficit of USD 32 billion with China, he said.

Texprocil hopes to achieve exports target of USD 13.5 billion in FY 15 from USD 11.8 billion in FY 14.

Despite local cotton prices ruling 10 per cent higher than international prices and slow down in exports in June quarter, Texprocil hopes to achieve exports target of USD 13.5 billion in FY 15 from USD 11.8 billion in FY 14, he said.

The cotton textiles registered negative growth of 4.95 per cent at USD 2,461 million in quarter ended June, 2014.

Among others, yarn exports also showed negative growth of 13.15 per cent and made up 6.73 per cent in the June quarter due substantial jump in local cotton prices.

Indian cotton prices remained higher than international cotton prices since February. With cotton prices higher than international prices - 70 per cent of its sale value of yarn is cotton cost - it is extremely difficult even for the highly efficient spinning sector to export its products, Ramaswami said.

"The home textile exports also got impacted as our main competitor Pakistan in our main market (EU) gained zero duty access, against 9.6 per cent customs duty for products from India," he added.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, July 18 2014. 19:15 IST
RECOMMENDED FOR YOU