Export of value-added cotton textile products such as dyed and printed fabrics and made-ups to African countries will be affected as the new foreign trade policy has removed the benefits extended so far on these exports, according to R.K. Dalmia, chairman of the Cotton Textiles Export Promotion Council.
Mr. Dalmia has said in a press release that the newly-introduced Merchandise Exports from India Scheme has allowed duty credit scrip of two per cent, three per cent and five per cent to exports of notified products to specific countries.
However, the scheme does not include export of products such as the dyed and printed cotton fabric and made ups to African countries.
The share of textile exports to African region is less than five per cent now and the potential is huge.
The products usually exported to the African countries are the materials that are used in the traditional dresses and are manufactured by small and medium-scale units here.
These units need support to tap the potential in the African market.
The early foreign trade policy granted duty credit scrips at four per cent of the FOB value of exports in general for export of cotton fabrics and made ups to many African countries, he said.
