Export of cotton fabrics, both woven and knitted to Bangladesh and Sri Lanka has been welcomed by Cotton Textiles Exports Promotion Council (Texprocil). This is under the Merchandise Exports from India Scheme (MEIS). A fresh list of textile products that are eligible for exports sops was announced recently by the Director General of Foreign Trade (DGFT). The MEIS scheme, introduced in the Foreign Trade Policy 2015-20 announced recently allows duty credit scrips at the prescribed rates of 2 per cent, 3 per cent and 5 per cent. This is on exports of items to certain countries classified under Group A, B and C.

Texprocil chairman R K Dalmia sees this as a very positive step as it will increase exports to the two countries. Knitted fabrics with H S (Harmonised System) Code 6006, which covers most of the knitted fabrics, though, are excluded from the benefits. Knitted fabrics with Lycra are value added products, which are being widely used in garments. Texprocil wanted the entire range of fabrics to be covered under the benefit to avoid unintended exclusions.

Also, exports of value-added and labour-intensive products such as cotton dyed and printed fabrics and made-ups to different African countries like Mauritania, Mali, Dar Es Salaam, etc, are not included by the MEIS.