CottonThe Cotton Textiles Exports Promotion Council (TEXPROCIL) has welcomed the inclusion of exports of cotton fabrics – both woven and knitted – to Bangladesh and Sri Lanka under the Merchandise Exports from India Scheme (MEIS), according to a statement by the trade body.

The Directorate General of Foreign Trade (DGFT) had announced a new list of textile items eligible for export sops last week.

MEIS was introduced in the Foreign Trade Policy 2015-20 announced recently. The scheme allows duty credit scrips at the prescribed rates of 2 per cent, 3 per cent and 5 per cent on exports of products to notified countries classified under Group A, B and C.

“This is a very positive step taken by the government as it will increase exports to these two countries. India can play a big role by supplying fabrics to Bangladeshi and Sri Lankan garment manufacturers as India is stronger in fabrics and the two countries are stronger in garment manufacturing,” Texprocil chairman R K Dalmia said in Mumbai.

However, knitted fabrics with H S (Harmonised System) Code 6006, which covers most of the knitted fabrics, including those with lycra, were left out in the list of items covered for export benefit. Knitted fabrics with lycra are value added products, that are being widely used in garments.

Texprocil has demanded that the entire range of fabrics should be covered under the benefit to avoid unintended exclusions.

The MEIS has also not included exports of value-added and labour-intensive products like cotton dyed and printed fabrics and made-ups to different African countries like Mauritania, Mali, Dar Es Salaam, among others, Dalmia said.

He urged the government to include exports of knitted fabrics covered under HS code 6006 to Bangladesh and Sri Lanka and exports of value-added products like cotton dyed and printed fabrics and made-ups to African countries under the MEIS.

These measures will give the much-needed impetus to exports at at a time when exporters are facing adverse conditions in major markets, he added.

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