Southern India Mills’ Association on Saturday hailed the Centre’s decision in restoring the incremental export incentivisation scheme for cotton yarn and appealed to restore Focus Market Scheme also.
The restoration of export incentivisation scheme would motivate the yarn exporters to recapture the market, due to the proactive measures taken by the Union Textile minister, SIMA Chairman, T Rajkumar, thanking the Union Commerce Ministry, in a release said.
Mr. Rajkumar also appealed the Centre to restore the FMS for cotton yarn, particularly for the Countries like Latin America and CIS Countries, as India cannot fully depend on China, which is the major importer of Indian Cotton yarn.
FMS is essential to offset the high freight rate for such countries. Signing of GSP Plus (Generalised System of Preference) agreement by Pakistan really posed a challenge to India, as Pakistan is gaining 9. 6 per cent advantage due to duty free access to EU countries, he said.
Mr. Rajkumar asked the Centre to announce suitable interest subvention (three to 5 per cent) at the earliest, which would enable the Indian exporters to compete with Pakisan to a certain extent and sustain the competitiveness.