Indian exporters of cotton yarn have been restored back with export incentive

Incentives for raw cotton and yarn exports that were withdrawn in September have been restored back. The Directorate General of Foreign Trade (DGFT), a unit of the trade ministry, gave no reason for restoring export benefits for yarn, a value-added product used by textile mills.

India, the world’s second-biggest raw cotton export, has restored an incentive scheme for cotton yarn exports, an official order said on Thursday.

Traders has projected that India will ship around 8-9 million bales of raw cotton in the crop year to September, down from 10.1 million bales in 2012/13.

D. K. Nair, secretary general of the Confederation of Indian Textile Industry said yarn exports could rise 10 percent in 2013/14 due to increased demand from China as it plans to end a raw cotton stockpiling programme to support domestic growers

He further added that those who will export more than last year will be eligible for a 2 percent incremental export benefit.

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