The Ministry of Finance, Government of India constituted three member Duty Drawback Committee, consisting of Dr.Saurmitra Chaudhuri, Chairman, Drawback Committee & Member, Planning Commission, Shri .T.T.Rasjogi (Rtd) Chief Commissioner of Customs and Central Excise and Shri S.B.Mohapatra , (Rtd) former Textile Secretary to the Government of India and this committee along with Shri. Najib shah, I.R.S., Joint Secretary , Drawback visited Tirupur on 23rd May 2010.

While submitting the data, comprising 100 cases, this time, all the accessories involved in manufacturing of garments and their duties part was included. I explained the current export scenario and emphasized the need for increasing the duty drawback rates for knitted garments. The advantages of our competing countries in terms of labour cost, VAT refund, Bank Interest Rates, Insulation from currency fluctuations etc., were also explained and sought a level playing field to sustain in the competitive global market. The committee appreciated our efforts for venturing into manufacturing and exporting of value added garments.

We hope the Duty Drawback Committee consider our proposals and recommend to the Finance Ministry for increasing the Duty Drawback Rates.

It was a rude shock to all of us when the textile mills were venturing into revising of the cotton yarn prices upwards intermittently against the normal practice of quoting prices in the month beginning and in fact, the rate of 40s Combed Hosiery Yarn count had touched a historical level of Rs.202.09 per Kg. and other counts, for 20s CHY,24 CHY,30S CHY and 34s CHY rates were increased from Rs.17/- to Rs.19/- per Kg.

With the initiative of Hon'ble Union Minister of Textiles, Thiru. Dayanidhi Mara, a meeting was organized on 6th June 2010 in Tirupur under the Chairmanship of Shri .P.S.Velusamy, Chairman, sri Shanmugavel Mills, in the presence of Shri. S.V. Arumugam, MD, Bannari Amman Spinning Mills Ltd, and Shri .A.P.Appukutti, Director, Chola Group of Mills to discuss about the cotton yarn prices and status of Industry.

After deliberations, it was decided that textile mills and garment exporters will co-operate and work in unison for the benefit of the textile industry as a whole. Also, it was agreed to revise and reduce the cotton yarn rates as follows and these rates will continue up to the end of August 2010. These prices will also be applicable to all mills.

Count                   Rs. per kg-net

40s CHY                     194/-

34s CHY                     184/-

30s CHY                     177/-

24s CHY                     165/-

20s CHY                     157/-

We hope the prices will come down still further in the coming days.

A.SAKTHIVEL
PRESIDENT