The Union Textiles Minister, Dayanidhi Maran, would meet the Finance Minister, Pranab Mukherjee, on Wednesday and take up the issue of delays in the implementation of the decisions taken at the inter-ministerial meeting to control cotton yarn price, sources said.
Noting that cotton yarn prices in the country had increased steeply in the past three months, the inter-ministerial meeting had decided to suspend the concession of 7.67 per cent provided to cotton yarn exporters under the Duty Entitlement Pass Book Scheme, impose cess on cotton yarn exports and provide for registration of cotton yarn exporters.
The decisions ran into difficulty with the spinning sector raising objections on the ground that they would be severely affected. Describing it as a “wrong medicine for a genuine ailment”, the Confederation of Indian Textiles Industry noted that the spinning mills had suffered huge losses during the past two years and urged the government to instead provide more support to the garmenting sector to absorb the increasing cost of yarn.
Apart from Mr. Maran, the inter-Ministerial meeting was attended by Agriculture Minister Sharad Pawar and Commerce Minister Anand Sharma.