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Ludhiana garment units resume production
04
Apr '11
Following the failure of the garment industry's efforts to persuade the Union Finance Minister Pranab Mukherjee to withdraw the excise duty, the thwarted garment producers in Ludhiana resumed production on April 1.

According to industry circles, many garment producers may choose to split up their units in a bid to skip the central excise exemption of Rs. 15 million.

This is expected to result in disparity in the prices of goods between small and the large units.

Garment industry representatives from various regions including Ludhiana, approached the Finance Minister on March 31 and pressed him for withdrawal of the excise duty, but the Minister did not pay heed to their demand.

Thus, with no other choice left, the garment units in the industry have resumed production activities.

The garment makers have requested their clients like Adidas, United Colors of Benetton and Reebok to pay them excise duty in advance as they do not have sufficient funds to pay the duty.

Fibre2fashion News Desk - India

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