The Cotton Textiles Export Promotion Council of India (TEXPROCIL) has requested the government for urgent policy intervention to provide fiscal relief and ensure credit flow to the textile sector. The suggested steps include extending the Rebate of State and Central Taxes and Levies (ROSCTL) scheme to cotton yarn and fabrics and the Merchandise Exports of India (MEIS) scheme to all textile products beyond March 31.
The spread of coronavirus has led to cancellation and deferment of orders on a very large scale and this has caused considerable anxiety among exporters of textile goods, KV Srinivasan, TEXPROCIL Chairman said in a statement. Almost 41 per cent of exports of material like cotton yarns and fabrics are directed to the 10 countries severely hit by COVID-19. Exports are expected to decline by over 40 per cent in the coming months, if the situation does not improve, he said.
TEXPROCIL has suggested extending interest subvention of 3 per cent beyond March 31 and cover cotton yarn within that to ease the financial burden.