To encourage the cotton spinning millers in the country, the Government has been implementing various policy initiatives and schemes viz., announcement of key reforms under a Special Package that includes additional incentives under the Amended Technology Upgradation Fund Scheme (ATUFS), relaxation of Section 80JJAA of Income Tax Actand introduction of fixed term employment for the apparel sector. Government is providing rebate of State and Central taxes/ levies embedded in manufacturing, assistance to exporters under Market Access Initiative (MAI) Scheme.
Under Pradhan MantriRojgarProtsahanYojana (PMRPY), Government is providing entire 12% of Employer’s contribution towards Employees’ Provident Fund (EPF) and Employees Pension Scheme (EPS). The rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel & made ups and 5% to 7% for handloom & handicrafts.The interest equalization rate for pre and post shipment credit for exports done by Micro, Small and Medium Enterprises (MSMEs) of textile sector has been enhanced from 3% to 5%.The benefits of this scheme have also been extended to merchant exporters which was earlier limited to only manufacturer exporters.
There is no report of cotton producers suffering from exorbitant cotton rates. The Association of Cotton Producers have also not submitted any representation to the Ministry for curtailment of rising prices of raw cotton.
This information was given by the Union Minister of Textiles, SmritiZubinIrani, in a written reply in the Rajya Sabha today.