NEW DELHI: Exporters of cotton and cotton yarn can now claim input duty reimbursement under the popular DEPB scheme with the government restoring the benefit with retrospective effect on the ground that it was no longer its policy to disincentivise exports of the commodity.
Cotton yarn exporters will get the benefit from April 1 2011 while cotton exporters can claim DEPB from October 1 2010. The government had discontinued the scheme forcotton and cotton yarn exporters since April 21 2010 claiming that it was not the government’s intention to encourage exports.
In the last cotton year, cotton exports were dis-incentivised by virtue of export tax which was dismantled on October 1 2010, commerce, industry and textiles ministerAnand Sharma pointed out. “Clearly, the policy intention of the government was not to dis-incentivise exports after that cut-off date and I have now taken a view to restore DEPB benefit on cotton with effect from October 1 2010,” Sharma said.
Similarly, the decision to restore DEPB benefits for cotton yarn from April 1 2011 was taken as the commodity was placed on the open general licence or OGL for exports from that date, the minister explained.
The government has been keeping a check on export of cotton and cotton yarn to prevent spiralling of domestic prices that affects the textile industry.