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Gangwar assures textile industry of addressing its demands
Jan '16
Textiles Minister Santosh Gangwar has assured textile industry bosses of looking into their demands and grievances which he described as reasonable. He also said he would also discuss those issues with the commerce and finance ministries.

Gangwar's comment came in Coimbatore after he heard the views of major industry associations in the region. He said all their 15 demands are very reasonable and assured them steps would be taken to find a solution.

The associations thanked Gangwar for announcing Amended TUF Scheme with a record Rs 17,822 crore allocation, extending export incentives for textile products under Interest Equalisation Scheme, enhancing duty drawback rates for various textile products and steps to promote coastal movement of cotton from Gujarat to Tamil Nadu in a cost effective manner.

They urged the minister to address some more issues to create a level-playing field in globalised environment and enable the industry achieve the target of $300 billion textile business size by 2023 from the current level of $110 billion.

The demands include continuation of Optional CENVAT route, fixing lowest slab of GST for textile industry, extending export incentives for cotton yarn export, reduction of excise duty on Man Made Fibres from 12.5 to six per cent and compensate farmers directly whenever the cotton market price rules below MSP.

Meanwhile, the Tirupur Exporters Association (TEA) in a memorandum to Gangwar listed a few issued it wants resolved under the new textile policy which is on the anvil.

Among them is zero per cent excise duty for manmade fibre as is the case with cotton, which TEA said will help increase the usage of manmade fibres and the production of garments. It will also boost the export of manmade fibre garments, as the global market is available for these garments throughout the year.

The memorandum also highlighted the hassles with customs that textile units have to face. It pointed out that the duty free entitlement for import of trimmings and embellishments and other goods used by the readymade garment sector for manufacture of garments for export was increased from 3 per cent to 5 per cent in last Union Budget and also fixed import of sample fabric of total length up to 1000 metre without payment of Customs Duty during one financial year.

It said that under the Export Performance Certificate Scheme, the garment sector utilized less than Rs.900 crores only against Rs. 5,150 crores for 5 per cent of FOB value of garment exports at Rs.1,03,000 crores in 2014-15. As the duty free import percentage has been increased to 5 per cent from July 10, 2014 onwards, the non utilization value is on higher side and therefore, to utilize the given facility out of 5 per cent, a maximum of 3 per cent of the licence may be allowed for import of fabrics without keeping restriction of 1,000 metre.

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