This is imperative because exporters of processed cotton madeups are being deprived of the benefits of the DEPB scheme when it is apparent that cotton handloom madeups are made out of dyed yarn and the fabric would not undergo any processing activity before conversion into madeups. Talking to The Financial Express, she said even though the commerce ministry had announced to that effect, the department of revenue under which Customs operates are reluctant to treat cotton yarn dyed made ups as processed cotton made ups.

"The irony is thatexporters taking into account the DEPB benefits have quoted prices to the foreign buyers," she adds.

By making necessary amendments in SION, the government will enable exporters of cotton handloom madeups to quote competitive prices in the international market, this in turn will improve the foreign exchange earnings of the country. Contribution of yarn dyed madeups alone constitutes to about 80 per cent of the overall export performance of the handloom industry. For the first half of the fiscal 1999-2000 madeups such as floor coverings, bedlinen, table cloth, towels, dish cloth has earned Rs 849 crore as against the total handloom export performance of Rs 948 crore.

`The council had made representation to the Directorate General of Foreign Trade (DGFT) recently', she says and added that the department agreed to make necessary amendment in the SION. This view was also raised at the open house meet with the minister of commerce and industry Omar Abdullah organised by the Federation of Indian ExportOrganisation (FIEO).