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, TEXPROCIL chairman KV Srinivasan 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. It has urged the government to cover items like quilts and fashion bedding under HS code 9404 and cotton shopping bags under HS code 420222 in the ROSCTL scheme. These items are being currently excluded as they do not fall under made-ups HS Chapter 63.
The council also appealed the government to expedite goods and services tax refunds, resolve glitches in ROSCTL payments and release claims under the erstwhile ROSL scheme.