Home / Knowledge / News / Textiles / FTP continues to rile textile sector
FTP continues to rile textile sector
06
Apr '15
The government’s new Foreign Trade Policy has come under fire from two other constituents of the textile industry. The cotton textiles export promotion council or TEXPROCIL and the synthetic and rayon textile export promotion council (SRTEPC) have said that the textile sector has not got its due under the new FTP despite it being one of the largest employment providers in country, according to media reports.  
 
TEXPROCIL chairman RK Dalmia said that at a time when the textile sector which is amongst the most competitive sectors in the world is facing challenges of high tariffs barriers on account of preferential tariff arrangements has been granted duty scrips of 2 per cent only for mainstream cotton textile products but higher rates have been given for handlooms, carpets, coir products under the merchandise exports from India scheme (MEIS).
 
Sectors like cotton yarn have been totally ignored especially at a time when exports of these products have declined sharply and face high logistic cost when exported to markets like Latin America, Dalmia said.
 
The SRTEPC’s reaction was even more hard hitting. In a statement, it said that the agony of man-made textile industry which is highly capital intensive and the only sector capable of attracting FDI has been discriminated against vis-à-vis the cotton industry. The council said it was unfortunate  that a sector which can help the government achieve its ambitious target has not been mentioned in the list of items granted liberal MEIS benefits under the FTP announced on the first of this month.
 
The council also pointed out that the cotton textile sector, which pays no taxes, has still been treated favourably in the FTP’s new scheme, MEIS, while the MMF textiles that contributes Rs 7000 crore as taxes and holds high potential has been given lower reward. For Europe and the US, MMF products have been given lower incentives as compared to cotton textiles.
 
The council is particularly upset because the benefits for promoting exports to major emerging markets for MMF textiles such as Latin America, Far East and African countries have been completely stopped in the new FTP without giving the sector’s exporters any scope for adjustment. The statement said the sector needs incentives for a couple of years to establish and stabilise MMF textiles in emerging markets.
 
Last week, two other textile trade bodies – Confederation of Indian Textile Industry or CITI and the Southern India Millis Association (SIMA) had also criticised the FTP. While CITI said the new policy has not provided any additional benefits to the textiles sector and instead removed or scaled down benefits for the textile sector, SIMA said the FTP failed to address sector specific issues although it had constructive policies on a macro level. 
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

news category


Related Categories:
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search