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The Apparel Export Promotion Council (AEPC) has said the government's decision to suspend sops for export of raw cotton and cotton yarn will have a sobering impact on booming fabric prices.

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The working of Indian businesses has been severely dented by a 40 percent hike in prices of cotton yarn, tumbling values of dollar and euro against the Indian rupee and a sharp increase in minimum wages for workers in the national capital, said Apparel Export Promotion Council (AEPC) in a release on Tuesday.

The Cotton Textiles Export Promotion Council (TEXPROCIL) urged the Government should consider giving additional benefits to the downstream Garment & Home Textile sectors so that they can tide over the temporary crisis rather than seek imposition of a tax on exports of Cotton Yarn.

The textile industry has divided over the government's decision to withdraw the Duty Drawback on exports of cotton yarn with different industry bodies recently giving chalk and cheese views on the issue.

Terming government's decision to withdrawn the Duty Drawback on exports of cotton yarn a blow to exports, Texprocil, an international marketing organization recently urged the government to restore the scheme.

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