Textile sector Current Affairs - 2020
The Cotton Corporation of India is holding surplus stocks of cotton. With the next harvest season approaching, the CCI is trying to boost exports.
To export the current stocks, India will sign Memorandum of Understanding with Bangladesh to export 1.5 to 2 million bales of cotton. One bale is 170 kilo grams. Also, the CCI will set up its own warehouse in Vietnam to boost cotton exports.
The CCI has so far procured 12.1 million bales of cotton. Along with its agent Maharashtra State Cooperative Marketing Federation, CCI was able to sell 900,000 bales of cotton this season.
Why Bangladesh and Vietnam?
India has chosen Bangladesh and Vietnam as they have duty-free access to markets of US, Europe, and China. This gives them an edge over Indian Yarn and garment exporters who pay comparatively higher duties.
Cotton Corporation of India
It is a GoI agency that is engaged in diverse activities related to export, trade, and procurement of cotton. It is also responsible for distribution of cotton and aids in import of cotton. The CCI is governed by the Textile Policy 1985 that was issued by the Ministry of Textiles.
Textile Policy in India
Currently India is working under National Textile Policy 2000. The Government of India announced in 2019 that a new Textile Policy, 2020 will be rolled out in mid of 2020. The New Textile Policy being formulated will focus on technical textiles, manufacturing of apparel and garment, man-made fibre products and exports.
Tags: Cotton • Cotton Corporation of India • Cotton trade • Exports • India exports
On May 1, 2020, the Government of India announced that the Rebate of State and Central Scheme arrears are to be provided in the form of scrips. It is to be provided by the Department of Revenue Communication.
The ROSL scheme was discontinued in March 2019. The scheme was replaced with Rebate of State and Central Taxes and Levies Scheme. The arrears to be provided in the form of scrips is to benefit many of the cotton textile exporters.
What is a scrip?
Scrip is a certificate that is subscribed to a bank or an individual entitling the holder a part of dividend or an amount of money.
The scheme supported apparels and made ups. The state and central taxes continue to be present in the cost of exports. The scheme rebates state and central taxes. This will include more than 56% of India’s textile export basket. The aim is to make the textile sector competitive.
Cotton fabrics and yarn account to 23% of total textiles and apparel exports in India. In 2018-19, the total cotton production was 28.7 million bales. In the same year, the cotton clothing exports were 36.62 billion USD. India exports cotton and cotton products mainly to UAE, US, UK, France.
USA is the major exporter of cotton in the world.