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A notification from the Central Board of Excise and Customs on revision in duty draw back rates for value-added textile products has brought cheer to the textile industry.
In a press release issued here today, the Deputy Chairman of the Southern India Mills’ Association (SIMA) P Nataraj said the attractive rates for certain value-added products would encourage the industry to focus on such products as this would generate more foreign exchange.
He, however, pointed out that the marginal reduction in the drawback rates and value caps for normal products could have been avoided, considering the crisis faced by the industry.
Explaining the significance of the announcement, the deputy chief of SIMA said the spinning mills in the South, which account for export of super fine count yarn (100s and above) would now be eligible to get drawback value of ₹25.60 a kg against the previous value of ₹18/kg.
Similarly, the revised rate on woven grey fabric with less than 200 gm per square metre is ₹40/kg against the earlier rate of ₹37/kg. However, for fabrics above 200 gm/sq m, the value cap has been reduced from ₹37/kg to ₹19/kg.
On cotton made-ups, the value cap has been reduced by Re 1/ kg to Rs 70, while the duty drawback rate increased marginally to 7.3 per cent from the earlier level of 7.1 per cent.
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