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GEA supports move to encourage use of MMF
Jun '10
Mr Rakesh Vaid
Mr Rakesh Vaid
The Managing Committee of Garments Exporters Association (GEA) met recently to deliberate and discuss the Draft National Fibre Policy (NFP) released by the Union Textiles Ministry. Mr Rakesh Vaid was particularly grateful to the ministry for taking this positive and timely initiative to formulate the National Fibre Policy.

According to him, it would go a long way in safe-guarding and promoting the interest of farmers, yarn manufacturers, fabric manufacturers and end users like garments exporters and was also happy to note that the policy would also encourage and motivate the exporters to increase their exports of man-made fibre and apparels.

He said that the GEA fully supports the Government policy to provide more and more incentives to encourage use of man-made fibre.

During the meetings of the working group and Sub-group constituted to formulate the National Fibre Policy, GEA agreed that the policy would strengthen the fibre economy, enhance the production and availability of fibre and make the Indian textile and garment sector competitive in the long term.

GEA also fully endorsed the recommendation to neutralize the excise and customs duty for cotton and man-made fibre with a uniform rate of excise duty on textiles and fibre and also favoured the suggestion to keep textile industry out of GST for two years and recommends that synthetic fibre should be covered under technology up-gradations with fund support from their Administrative Ministry.

Mr Vaid was of the opinion that most of the GEA member garments exporters are supplying cotton based apparel products to overseas buyers and there has not been much growth of man-made fibre based apparel exports because we are not price competitive in the international market.

With more emphasis now on the cost competitiveness of man-made fibre, exporters may be encouraged to explore possibilities of exporting new varieties with new fibres. The policy would definitely boost the future growth of man-made fibre, yarn and fabric industry in India.

A technology mission on specialty cotton with a fund outlay for five-year period is a welcome initiative proposed in the Policy. Another welcome initiative of the National Fibre Policy is setting up of a National Cotton Council (NCC) which will engage in monitoring, coordinating and creating a unified platform for development of the cotton fibre.

Fibre2fashion News Desk - India

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