An appeal for reconsidering the withdrawal of duty drawback on exports of cotton yarn has been submitted by textile mills to the Union Government. A notification has been issued by the government in this regard on 29th April 2010.
V.S Velayutham, Chairman, Cotton Textiles Export Promotion Council explained in a release that withdrawal of duty drawback was basically a timely tested scheme initiated for reimbursing the incidence of excise and customs duties levied at the product’s input stages.

Agreement of WTO on countervailing measures and subsidies permitted “remission or exemption of prior stage cumulative indirect import charges and taxes levied over inputs which are used for the development of export products”

Mr. Velayutham told that the government had already handled a blow to trade of exports and had also moved against their own principle of goods exporting without taxes.

J. Thulasidharan, Chairman of Southern India Mills Association explained that duty drawback was actually not an incentive.

It was simply a duties refund and was levied on most export commodities. Prices of yarn were determined by market experts depending upon demand and supply and any kind of moves made for getting artificial control over the intermediary products definitely would bring an effect on the functioning of the whole textile value chain.

Nigeria: Comments given by Senator Jubril Kuye, Commerce and Industry Minister were condemned by the producers of textile, explaining that any kind of financial support is not really required by the Federal Government.

Producers were disturbed with the comments given by Kuye explaining that government shouldn’t really rush to disburse textile revival funds. Stating on behalf of NTMA, Nigerian Textile Manufacturers Association, producers said that revival of the sector was needed for which disbursal of textile sector revival funds was important. This was also confirmed by stakeholders and experts of the industry. More than 30% of the problematic situations faced by the textile sector are mainly because of the lacking in finances.

On his way to a trip abroad, Kuye had explained that, “With years of experience with me, I can see where the problem actually lies. Therefore my suggestion is that revival packages should not be paid out by the government.”

He had also informed that, “It should be more than just giving out finances to the textile industry, alongside with it, it’s necessary to make sure that abundant quantity of cotton in grown and the mills are given regular cotton supply”