Wool exporters seek restoration of old duty drawback rates

The Wool and Woollens Export Promotion Council (WWEPC) has asked the Textiles Ministry to restore the old rates of duty drawback on wool products to reduce exporters' losses due to forex rate fluctuation.

With exporters unlikely to achieve the US$ 630 million target for wool exports in 2010-11, said WWEPC Chairman Ashok Jaidka  and demanded from Ministry of Textiles to revert to earlier rates of duty drawback, which can give some cushion to wool exporters to contain their losses.

In September, the Centre had slashed the rate of duty drawback on wool products, including wool tops, woollen yarn and woollen fabric, in the range of 5% to 20%, in line with its policy to reduce the fiscal incentive provided to a host of export sectors during the global economic slowdown.