The Cotton Textiles Export Promotion Council (Texprocil) has welcomed the revision of Duty Drawback Rates announced by the government. Welcoming the drawback rates, Chairman Texprocil R K Dalmia said the move will certainly give a boost to exports of cotton textiles as they will provide adequate neutralisation of the incidence of duties and taxes on the export goods and make them more competitive in the international markets.

As per the revision, the drawback rates and caps have been increased for made ups both made of cotton as well as cotton blended with manmade fibre. This is a step in the right direction as it will promote exports of value-added products in line with the stated policy of the government, according to Dalmia. The drawback rates and caps for different types of cotton yarns have, by and large been retained with no significant reductions. This has come as a major relief to the spinning sector which is currently under severe pressure due to various reasons, averred Dalmia.

However, he pointed out that there should have been some increase in the drawback rates for fabrics as India is fast emerging as a manufacturing hub for these items. Government has also been keen to promote investments in the weaving sector, he pointed out. Further, un-rebated state levies should also be refunded through the drawback route for yarns, fabrics and made ups as in the case of apparels.