Indian cotton spinning industry organization calls on the government to refund taxes and fees

The cotton yarn industry has always been one of the pillars of the Indian textile industry, and it is also a highly modern and technology-driven industry. From April to June 2019, India’s cotton yarn exports fell from 338,000 tons in the same period of the previous year to 226,000 tons, a year-on-year decrease of 33%.　　In terms of months, the export volume of Indian cotton yarn from April to June this year dropped from 90,000 tons to 77,000 tons, and to 59,000 tons. The 59,000 tons in June was the lowest in the past five years. The cotton yarn industry has always been one of the pillars of the Indian textile industry. It is also highly modernized and technology-driven, while also providing farmers with sustainable income. There are many reasons for this sharp decline, including the decline in exports in major export markets such as China, Bangladesh, and South Korea, as well as China's provision of duty-free access for imported cotton yarn to countries such as Pakistan and Vietnam from April 1, 2019.　　Indian industry insiders stated that considering the large-scale investment in the textile industry and the weak domestic market demand, exports are the only way to ensure uninterrupted production and capacity utilization. Although cotton yarn is a value-added product, it is excluded from export benefits such as interest subsidies, MEIS and ROSCTL programs. In view of the above situation, the Indian industry association calls on the government to include cotton yarn in the interest subsidy program and refund the taxes and fees incurred in the production process. If the downward trend in exports continues in the next quarter, it will lead to the closure of spinning mills. Article keywords: 　Indian cotton yarn export tax rebate overseas textile