By Our Staff Reporter
MUMBAI, MAR. 21
The Cotton Textiles Export Promotion Council (Texprocil) has appealed to the government to continue with the RoSCTL rates for cotton madeups under the RoDTEP scheme (since the RoSCTL scheme is subsumed under RoDTEP scheme). Mr. Manoj Patodia, Chairman, Texprocil, said that the council has maintained that as the RODTEP Scheme seeks to rebate duties abd levies similar, if not identical to the Central and State level taxes rebated earlier under the ROSCTL Scheme, the rates should be the same and no reduction should be done under the new rates proposed under the RODTEP Scheme for madeups.
This will also help in sustaining the level of exports of made-ups across countries and in turn will also lead to substantial employment generation, Mr. Patodia pointed out and added that the council has also requested that the RODTEP rates should be extended to all textile products across the value chain. It may be noted here that the RoDTEP Scheme has been made effective from 1st January, 2021. However, the rates are yet to be notified and may take some more time creating huge uncertainty for the exporters.
Briefing on the shortage of containers, Mr. Patodia emphasised that the problem of acute shortage of containers continues is adversely affecting exports. Triggered by lower levels of imports, the container shortage is leading exporters to fail in maintaining timely shipment schedules. There has also been a steep rise in the freight rates which has further aggravated the problem.
The Council has alerted the Government with regard to the "opportunity loss" that the delays in shipment are causing thereby severely affecting export growth, he informed. On the raw material price front, Mr. Patodia said that as the textile sector began operating at near optimum capacity, demand for cotton and yarn increased sharply as did the demand for fabrics/madeups/ garments.
Consequently, yarn prices have also increased since the beginning of this year, riding primarily on rise in cotton prices, besides domestic and export demand. However, it is exceedingly difficult to establish any direct correlation between the price rise and production levels, stock position, export growth or consumption for mill use.
Data on exports of yarn shows that they have increased by about 4.4% in quantity and declined by (-) 4.3% in value during April-January, 2021 compared to the previous year same period. At this stage it is observed that exports of cotton yarn are range bound and have not "spiked" and hence are not a major contributory factor to the rising prices, Texprocil Chairman pointed out.
(Source: Tecoya Trend)