Home / Knowledge / News / Textiles / India's MMF industry demands fibre neutral excise policy
India's MMF industry demands fibre neutral excise policy
14
Nov '14
The man-made fibre (MMF) industry in India has demanded that the Union Government implement a fibre neutral excise policy and remove bias and anomalies against the MMF industry.
 
The MMG producers, represented by the Association of Synthetic Fibre Industry (ASFI) have urged the Indian Government to bring down the current excise duty of 12 per cent and equal to that levied on the cotton fibre and yarn for enabling the Indian textile industry to achieve a greater share in the global market.
 
India is the second largest producer of synthetic fibres in the world with presence of presence of large plants having state-of-the-art technology. Although MMF textiles constitute almost two-third of the domestic textile market, India’s share in global exports of value-added MMF textiles is miniscule at around 3 per cent.
 
At present, only 27 per cent of India’s total textile exports of US$ 39 billion are made from MMF. In comparison, nearly 80 per cent of China’s textile exports are made of synthetics.
 
Asian competitors like Sri Lanka, China, Indonesia, Thailand and Pakistan levy uniform duty of 20 per cent, 17 per cent, 10 per cent, 7 per cent, and zero per cent, on both cotton and synthetic fibre and yarn.
 
Bangladesh does not levy any duty on cotton and synthetic fibres, but it levies a duty of Tk 1.5 per kg on both cotton and synthetic yarn. In comparison, India collects a duty of 12 percent on synthetic fibre and yarn, while there is no duty on cotton fibre and yarn.
 
The bias against man-made fibre and yarn has left India far behind China in terms of investment, scale of manufacturing and exports, feels ASFI.
 
In letters submitted to the ministries of finance, textiles and commerce & industry prior to the Union Budget 2015, ASFI said the high excise duty on man-made fibre and yarn has become a roadblock for the growth of the textile industry.
 
Explaining how the 12 per cent excise duty on man-made fibre and yarn affects the textile industry, SC Kapoor, director general, ASFI, says, “In the domestic market, poor consumers suffer as the least expensive polyester shirt or a saree made of synthetic fibre which can be bought at Rs 150 attracts a huge excise duty burden of 12 per cent. In contract, no excise duty is paid on the cotton fibre and yarn used to produce expensive cotton shirts bought by rich consumers at prices ranging above Rs 1,000. Therefore, only the poor pay more tax on textiles in the domestic market while the rich are favoured with no excise duty on the premium cotton worn by them.”
 


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search