The Centre on Wednesday withdrew incentives for export of cotton yarn as a part of a series of measures to moderate the commodity prices in the domestic market.
The measure comes a day after the Textile Ministry tightened the norms, virtually stopping export of raw cotton in the wake of a sharp increase in domestic prices.
“Export of cotton yarn...shall not be entitled for the DEPB (Duty Entitlement Pass Book) benefit with immediate effect,” the Directorate General of Foreign Trade (DGFT) said.
Under the DEPB, duty paid on the imported contents of export consignment is refunded. With the withdrawal of the same, exporters would lose incentive between 5.6 and 8.2 per cent.
Last week, the government had slapped export duty of Rs.2,500 a tonne on raw cotton. Registration of cotton yarn exports was also made mandatory. Within a fortnight of the meeting of senior ministers, including Pranab Mukherjee, Sharad Pawar, Anand Sharma and Dayanidhi Maran, the government has taken a series of measures to arrest the rising prices of cotton and yarn.
