SME Times News Bureau
In order to control exports and to check domestic prices of cotton yarn, the government has suspended the 7.5 percent duty concession on cotton yarn exports.
Media reports that the decision was taken to suspend the duty at a high-level meeting chaired by Finance Minister Pranab Mukherjee on Tuesday, adding Agriculture Minister Sharad Pawar, Commerce Minister Anand Sharma and Textile Minister Dayanidhi Maran were also present.
The textile ministry had been pitching for such measures to tame the price of cotton yarn resulting in nearly 50 percent increase in fabrics prices in the past five months in domestic market.
The exporters were getting duty concession of 7.5 percent under the duty entitlement pass book (DEPB) scheme. Under the scheme, companies get customs duty refund on imported inputs of export items.
Besides, the government has also decided to slap export duty on dispatches of raw cotton and cotton yarn, the official said. "The prohibitive duty (export duty), which would discourage exports, is likely to be issued next week," he added.
