Financial Daily from THE HINDU group of publications
Tuesday, Sep 28, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 28, 2004 |
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Industry & Economy
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Textiles Karur textile exporters upset with DEPB cut Our Bureau
Coimbatore , Sept. 27 THE cotton textile exporters of Karur have said that the lowering of duty entitlement pass book (DEPB) scheme rates announced by the Centre may cause a ripple effect, leading to the shrinkage of textile exports. Textile exporters quote their prices only after taking into account the DEPB rates and as such, if the Government trims the rate by 50 per cent, the exporters may not be able to complete all the contracts they have entered into. They are not in a position to increase their export rate since the prices already quoted by them have been made against stiff competition, said Mr M. Sivakkannan, Secretary of the Karur Textile Manufacturer-Exporters Association. In a statement, he said that it was surprising that the DEPB rates should be slashed at a time when the Union Commerce Ministry has vowed to neutralise the incidents of levies and duties on inputs used in export products on the principle that the duties and levies should not be exported. He said that the DEPB rate reduction was announced under the misconception that the excise duty on cotton textile goods is fully withdrawn. Textile exporters are already getting duty-free input under Rule 19(2) of the excise rules and hence, the excise duty removal through budgetary measures is of no avail to the exporters. The exporters who incurred huge capital expenditure towards quality management would only be hit further by the rate cut, Mr Sivakkannan said.
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