Plea to release pending duty drawback amount for yarn exports
Cotton yarn exports in 2013-14 are expected to be more than 10 per cent higher than the previous year. While it was 1,110 million kg in 2012-13, the exports are expected to be about 1,200 million kg or a little more in 2013-14.
An industry source says that yarn exports were good during the last financial year (2013-14) till December. For a couple of months earlier it went up to even 140 million kg. However, the demand reduced in February, especially for lower count yarn.
The actual exports might be lower than the registrations. One of the main buyers of Indian yarn is China and the Chinese demand had reduced during the last few months. Though the demand is yet to pick up, the situation could change in the coming months. The demand continues to be good for higher count yarn (more than 50s count).
Meanwhile, the Cotton Textiles Export Promotion Council has appealed to the Union Government to release the pending duty drawback amount (which is a refund of duties and taxes incurred at the input stage) for yarn exports.
Chairman of the council Manikam Ramaswami has said in a press release that drawback claims are pending since September 2013, affecting the cash flow for textile mills.
For some units, 50 per cent to 75 per cent of turnover is from exports and delay in getting the drawback claims is affecting them.
The industry source says that normally the drawback claims are settled in a month. The delay for the more than six months is affecting the competitiveness of the mills.