Government restores DEPB benefits for cotton and cotton yarn
27 Jul 2011
The government has restored the Duty Entitlement Pass Book (DEPB) scheme benefits to cotton yarn with retrospective effect from April 2011, commerce and industry minister Anand Sharma said on Tuesday.
"I have taken a composite review of the cotton and cotton yarn industry over the last few days. Both of these segments have faced huge fluctuation in the international and domestic prices," the minister said.
Sharma further said "the policy of the government has been calibrated over the last one year and cotton yarn has been placed on OGL for exports with effect from 1 April 2011. Therefore, I have taken a conscious decision to restore the DEPB benefits for cotton yarn."
On the issue of DEPB benefits for cotton, Sharma said, "In the last cotton year, cotton exports were dis-incentivised by virtue of export tax which was in place, which has since been dismantled with effect from 1 October 2010.
"Clearly, the policy intention of the government was not to disincentivise exports after that cut-off date and I have now taken a view to restore DEPB benefit on cotton with effect from 1 October 2010."
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