Textile industry body, the Cotton Textiles Export Promotion Council (TEXPROCIL) has said that removal of benefits on exports to African countries in the new foreign trade policy will affect shipments of value added products like cotton dyed and printed fabrics.
In the new Foreign Trade Policy 2015-20 all benefits on exports to African countries has been removed, seriously impacting exports of value added products like cotton dyed and printed fabrics and made-ups to African countries. Earlier, in the Foreign Trade Policy 2009-14, exports of cotton fabrics and made ups to many African countries were granted duty credit scrips at 4 percent of the Free On Board (FOB) value of exports in general and in some cases 7 percent.
TEXPROCIL chairman R K Dalmia has urged the government to include exports of value added products to African countries in the new Foreign Trade Policy 2015-20, stating that withdrawal of these benefits on exports of cotton fabrics and made ups to African countries has put the exporters into a huge dilemma.
The council had already urged the Centre to conclude FTAs with the European Union, Australia and Canada to remove trade barriers and gain market access to these markets, saying that lack of adequate focus and proper planning towards boosting exports will lead to steep decline in cotton textile exports.
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