The Indian Cotton Sector Is Taking a Beating
India's cotton yarn sector has so far lost nearly $2.5 billion, according to the Confederation of Indian Textile Industry (CITI).
July 14, 2011
The Indian cotton yarn sector has incurred massive losses this year, totaling as much as $2.45 billion, according to a statement released by the Confederation of Indian Textile Industry (CITI).
Shishir Jaipuria, Chairman of the CITI, has criticized certain government policies for the ill health of the Indian cotton yarn sector, including the elimination of export incentives, taxing the garment industry with an excise duty of 10% on branded garments and made-ups, and establishing irregular policies on cotton yarn exports. On the other hand, S. P. Oswal, Chairman and Managing Director of Vardhman Textiles, has been quoted saying that the woes faced by the Indian textile industry are predominantly due to severe fluctuations in cotton prices in the Indian market in the recent months.
As part of an immediate relief package to the Indian textile industry, Jaipuria has demanded that the Indian government restore the Duty Entitlement Pass Book policy and duty drawbacks on cotton yarn exports, as well as the restoration of the 4.5% subsidy on textile and clothing exports.