The Ministry of Textiles has set an ambitious target of US $ 18 billion for the year 2012-13, 31.05% higher than US $ 13.7 billion achieved in the previous year, 2011-12. In order to meet this target, AEPC Chairman Dr. A. Sakthivel has in a memorandum requested Anand Sharma, Union Minister of Commerce, Industry & Textiles, certain benefits which should be given to the apparel industry in view of the bad market conditions in EU & US, with effect from 1st April 2012:
1. Increase in all industry duty drawback rates of cotton/others 10.27%; Blend containing cotton and man-made fibres/yarn 11.21%; manmade fibres 12.53% all on FOB.
2. Duty-free import entitlement of specified trimmings & embellishment which is 5% of FOB value of exports during previous financial year for handloom and handloom made-ups, be extended to garment sector to the extent of 5% (now 3%);
3. EPCG Scheme at zero duty be extended up to 2016-17;
4. Additional duty credit scrip to ‘Status Holder’ be increased to 2% from 1% for years 2012-13 & 2013-14;
5. Under Para 3.14.2 of Foreign Trade Policy, countries like Russia, South Africa, Brazil, South Korea, Japan and Australia may be added and benefit be given up to 2013-14;
6. Introducing Gold Card scheme: The Gold Card holders may be allowed to buy duty free oil from domestic oil companies for their factory use for self generation of power through generators/captive power plant, the benefits extendable to Apparel Parks.
7. Focus Product Scheme, garments (Chapter 61 & 62) for exports to Latin America, Australia & New Zealand may be incentivized to the extent of 5% by way of duty credit scrip on FOB value of exports for the period 2012-13 & 2013-14;
8. MAI (Market Access Initiative) support of Rs. 5 crores for 50th IIGF to be held from 22-24 January, 2013;
9. 100% Financial support of Rs. 150 lakhs for study on Competitiveness in Indian Apparel Industry;
10. Continuation of 2% interest subvention; 2% market linked focus product scheme; 1% status holder incentive and all other benefits announced in this foreign trade policy in 2013-14 for the seamless benefits so that exporters can book next year’s fashion season in this year itself.
The AEPC, besides several other recommendations, was also in favour of increasing cotton yarn prices in all the counts from 20s to 40s as international prices are less than the prices prevailing in India.
