Mumbai, Feb 26: The benefit of 5%
incentive on exports of cotton given effect retrospectively
from April 1, 2008, would not reach the intended
beneficiaries, a top industry official has said.
With the cotton season already over and most farmers
having sold their produce, the aim of the government to
provide relief to cotton producers would not be achieved,
Textiles Export Promotion Council (TEXPROCIL) Chairman V S
Velyutham said in a statement here.
Reacting to the Centre`s decision to provide five per
cent incentive for cotton exports and allow government
agencies such as Cotton Corporation of India (CCI) to provide
discounts for bulk purchase, he cautioned that these measures
could become counter-productive if some other steps are not
taken immediately.
"These measures, though well-meaning, could become
counter-productive and detrimental to overall growth of Indian
textile industry, if simultaneous steps to protect the
interests of value-added segments such as yarn, fabrics and
home textiles were not taken immediately," he said.
The export competitiveness of the Indian textile
industry is already reeling under the pressures of high cost
of cotton on account of an unrealistic rise of over 40 per
cent in its MSP (minimum support price), Velyutham said.
Bureau Report
