Commodity Online
NEW DELHI: The government has announced several relief measures to support the textiles industry that has been struggling huge loss due to the appreciation of rupee against UD dollar.

The textile exports and clothing from India have been affected adversely by the appreciation of rupee against the US dollar, said E V K S Elangovan, the Minister of State for Textiles in the Parliament today.

However, trade statistics available for the period April-December, 2007 indicate that the overall exports at USD 14935.69 million in this period denotes an increase of 9.33 percent in US dollar terms, over the corresponding period of 2006-07, though in rupee terms, the exports at Rs.60351.09 crore represent a small decline of 2.9 percent over the corresponding period of 2006-07, due to the aforesaid weak position of the dollar.

The Minister stated that as per estimates made by Confederation of Indian Textile Industry (CITI), for every export loss of rupee one crore, there would be a job loss of 34-35 workers. However, no physical quantification of actual job losses, on account of appreciation of the rupee, has been made by CITI.

Following steps have been taken to boost the industry:

(i) DEPB rates enhanced by 3% for 9 sectors including textiles (also handlooms), RMGs and handicrafts. For other items, DEPB rates enhanced by 2%.

(ii) ECGC premium reduced by 10%.

(iii) Amount of Rs.600 crore released for clearing arrears of CST reimbursement and terminal excise duty.

(iv) Duty drawback rates enhanced by 10-40% of the existing rates.

(v) Subvention on credit rate allowed upto 4% including interest subsidy of 2%.

(vi) Refund of service tax paid by exporters on services linked to export of goods viz port services for exports, transport of goods by road from container depot to port of export, general insurance services for insurance of goods for export, technical testing and analysis agency services and inspection and certification services, storage & warehousing services and clearing activity services.

(vii) Customs duty on intermediates for Polyester staple fibre and polyester filament yarn reduced from 7.5% to 5%.

(viii)Customs duty on paraxylene, a raw material for the intermediate PTA reduced from 2% to 0%.

(ix) Customs duty reduced on other man-made filament yarn & staple fibres of acrylic & viscose from 10% to 5%.

(x) Customs duty reduced on spun yarn of man-made staple fibres & filament yarn (other than nylon) from 10% to 5%.

(xi) Customs duty reduced on polyester chips from 7.5% to 5%.

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