Snippets

Abnormal DBK rates on apparel, cotton textiles upsets exporters

Duty drawback which was about 9-10% on knitted and woven garments on its FOB value has suddenly been changed to Rs 42 per kg for cotton and Rs 53.50 for manmade fibre garments.

And in case of cotton textiles, especially fabrics and made-ups, the rates have been reduced ranging between 24-47% in the case of fabrics and 64-71% in the case of made-up items like bedlinen and terry towels.

The CIAE has termed these rates as illogical, and will discourage exports of value-added products. According to TEXPROCIL, exporters were expecting a neutralisation of the reduction in DEPB rates, but that has not happened. A lot of contracts entered into at the recent Heimtextil Fair in Frankfurt are expected to get disrupted due to this sudden and unwarranted change, say exporters.

Rs 90 cr production loss due to powerloom strike

With over one lakh job-working powerlooms in the district (Palladam, Somanur, Avinashi, Mangalam, etc) remaining silent for the last one week, demanding upward wage revision of 75%, the production loss during the period has been estimated at Rs 90 crore.

As the jobworkers were sticking to their demand for 75 per cent hike, which according to them was last effected in 2000, the cloth manufacturers, saying that they had increased the wage by 20 per cent four months ago, were firm that the rates could be fixed on individual unit base, since the cloth differed from unit to unit, which was also market driven.