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BVUS opposes hike in customs duty on raw silk import
14 Mar '12
2 min read
The Banarasi Vastra Udyog Sangh (BVUS), an association representing textile manufacturers of Varanasi in the Indian state of Uttar Pradesh, has requested the Union Finance Minister Mr. Pranab Mukherjee to not to hike the customs duty on import of raw silk.
In a letter to the Finance Minister, Mr. GK Kediya, the Convenor of the Yarn Development Committee of the association, said the duty on import of raw cotton should not be increased from the current 25 percent level.
The appeal was in response to a demand from domestic reelers to increase the customs duty on raw silk import to 30 percent.
Mr. Kediya said any increase in the customs duty would not result in rise in prices of raw silk produced locally, and it will only hurt weavers.
The domestic raw silk prices are currently Rs. 500-600 lower than the prices of imported raw silk. Usually, the prices are about Rs. 200 lower, but the current decline in price is owing to bumper silk production and reduced demand as weavers are switching to synthetic yarn, he said.
He added that any rise in customs duty on imported raw silk would not have any effect on the prices of domestic raw silk.
Hence, instead of hiking customs duty, efforts should be aimed at enhancing quality of local raw silk and to bridge the demand gap of 10,000 tons, Mr. Kediya stated.
In a letter to the Finance Minister, Mr. GK Kediya, the Convenor of the Yarn Development Committee of the association, said the duty on import of raw cotton should not be increased from the current 25 percent level.
The appeal was in response to a demand from domestic reelers to increase the customs duty on raw silk import to 30 percent.
Mr. Kediya said any increase in the customs duty would not result in rise in prices of raw silk produced locally, and it will only hurt weavers.
The domestic raw silk prices are currently Rs. 500-600 lower than the prices of imported raw silk. Usually, the prices are about Rs. 200 lower, but the current decline in price is owing to bumper silk production and reduced demand as weavers are switching to synthetic yarn, he said.
He added that any rise in customs duty on imported raw silk would not have any effect on the prices of domestic raw silk.
Hence, instead of hiking customs duty, efforts should be aimed at enhancing quality of local raw silk and to bridge the demand gap of 10,000 tons, Mr. Kediya stated.
Fibre2fashion News Desk - India
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