CITI seeks excise duty reduction on all man-made fibres

For stabilising cotton prices, CITI has suggested that measures need to be taken to enable textile mills to buy and stock more cotton. It recommended that (a) Interest rate for working capital for purchase of cotton may be reduced to 7 per cent from the current 12 per cent, as a one-time measure for the current cotton year ending September 2015; (b) Margin money for purchase of cotton may be reduced to 10 per cent from the current 20-25 per cent; and (c) Working capital for purchase of cotton may be made available to cover 5-6 months’ cotton requirements of the mills instead of 2-3 months’ requirement currently being financed by the banks. (RKS)

Fibre2fashion News Desk - India