Textile exporters are delaying finalising their orders in the international
market due to uncertainties regarding the applicability of duty draw back
scheme to them, Mr P Nataraj, Chairman of Southern India Mills Association
The government has not yet given the mandate to the Duty Drawback Committee
to recommend the revised duty drawback rates and ROSL (Rebate of State Levies).
The Government had extended the benefits only up to September 30. As there is
uncertainty in the rates of benefits, export booking is getting delayed, he
Textile exporters need 60-75 days to ship the goods from the time they
confirm the orders. If there was a delay in finalising orders, they would be
unable to ship on time.
Countries such as Bangladesh and Vietnam have trade agreements with the EU
and the U.S. and have close to a 10% cost advantage over Indian garment
exporters because of nil import duty.
India can be competitive only if duty drawback and export benefits are
continued. Textile exporters might not register growth if the duty drawback
rates are reduced, he said.
The industry had given its suggestions to the Government on the rates. We
expect that the benefits given to exporters now are continued without
reduction, he said.
The Union Government should extend the export benefits till business revived
and ensure that the pre-GST export competitiveness of the industry was
sustained, he said. The Government should also expedite clearing all the
pending export benefits, Mr. Nataraj added.