In a bid to incentivise cotton yarn exports, the ministry of commerce is likely to reinstate the duty entitlement passbook scheme for the sector. Sources told CNBC-TV18 that commerce secretary Rahul Khullar, while interacting with the textile industry's stakeholders, asked them to develop a consensus on quantity which may be exported in view of the fact that cotton production is expected to go up.
However, the Textile Secretary Rita Menon insisted during the meeting of secretaries that her ministry is not concerned with the production figures. It is only concerned about ensuring adequate supply of cotton to the domestic industry during the lean season. Menon said, "We have absolutely no issue on the fact that cotton should be exported but we are just very anxious that there is adequate work for industry to do, given that 25 lakh bales are required every month. The Textile Minister is concerned about ensuring adequate stocks of cotton to tide over the lean season later on in the year when the cotton arrivals have not yet come in and where there is no cotton crop."Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
