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In his letter, he submitted the following points: • Somehow the real reason for low prices/lack of demand forcotton/cotton yarn is not fully understood. Cotton and cotton yarnare raw materials mainly used for the production of apparel, madeups and similar value add products. The reason of lack of demandfor cotton and cotton yarn and consequently tumbling of prices isbecause the value added segment is facing severe competition andcontraction of demand from the end consumers. • Thanks mainly to locational advantage, cotton / cotton yarnproduction in India which enjoys a near monopoly status. Very fewcountries compete with us in terms of acreage / total production.Unfortunately this locational advantage available to the rawmaterial producers has no benefit for the value add apparel / madeup industry, as these sectors must compete with internationalbuyers for Indian raw materials. Consequently, inspite of being inthe top 3 producers for cotton / cotton yarn, the value addedsegment has less than 2.5 % share in world market of apparel. • An increase of one billion dollar of apparel exports willlead to a requirement of additional 450 million mtrs of fabric andover 75 million kilos of yarn !! The point being made is thatincentivization of value add product automatically creates demandfor the entire value chain. If cotton and cotton yarn are eligible for 5.6 per cent and 7.6 percent DEPB with retrospective effect, it stands to logic and reasonthat the apparel sector because of its value addition deservesminimum 15 per cent incentive. • 2 per cent market linked focus product scheme from 1/4/2010for the U.S and EU markets. However, this benefit was withdrawnfrom the U.S w.e.f 30/9/2010 and from E.U w.e.f 31/3/2011.Currently, there are no such benefits available to our sector. • Since DEPB is to be phased out by 30/9/2011, we request youto reintroduce the MLFPS scheme and enhance the value of the scriptfrom 2 per cent to 7.5 per cent. w.e.f 1/10/2010 for EU and USmarkets. He further wrote that, since most apparel exporters use the drawback route, we are only asking for differential compensation.Currently, draw back rate is approx 7.5 per cent and therefore thescript requested is for the balance 7.5 per cent. The above step will give tremendous fillip to exports of value addproducts like apparel. It will also boost exports of manufacturedproducts out of the country, which is one of the goals of the 12thfive year plan. It will also enable to compete effectively with those countries,whose export policies are tailor - made for the apparel industry. With fears of double dip recession and overall nervousness inoverseas markets, the government's support is badly needed. Mr. Udani has requested for a sympathetic consideration of theabove plea and for supporting the producers and exporters of valueadd products, who create millions and millions of jobs within thecountry. I am an expert from dimmable-gu10.com, while we provides the quality product, such as LED Bulbs Manufacturer , LED PL Light, Dimmable GU10,and more.
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