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SIMA submits proposal of measures to textile minister
16 Jun '09
5 min read
- Increase the credit limit period of 3 to 6 months to nine months
• Withdraw 5% export incentive offered for cotton and also curtail the bulk discount sales as practiced by the CCI and NAFED which benefited only the cotton traders and the competing countries like China, Pakistan, Thailand and Bangladesh.
• Streamline the roles of CCI and NAFED particularly the procurement and sales policy and ensure that the benefits reach only the cotton farmers and the industry and not the handful number of traders as happened during the current cotton season.
• Revamp the minimum support price for raw cotton on a scientific basis so that the interests of both the cotton farmers and the textile mills are taken care of.
2) Manmade Fibres
Withdraw import duty and the central excise duty on manmade fibre including their intermediaries so as to benefit the weaker section of the people. Since the cotton textiles have become expensive, the poorer section of the society can afford only the synthetic textiles. Currently, the consumption of cotton and synthetic textiles in India is only in the ratio of 60:40 as against the reverse globally.
3) Considering the undue delay in reimbursing TUF interest subsidy and erode the working capital of mills, either make the interest subsidy as nett of interest or convert all the Government dues including TUF subsidy, TED etc., into working capital margin money.
4) Relax the banking norms particularly for CDR proposals and moratorium on repayment of term loans so that NPAs are avoided and also extend the repayment period for TUF loans to 15 years.
5) Export Incentive
• Reinstate the interest subvention of 4% on export credit effective from October 2008.
• Increase the duty drawback taking care of all State levies, cross subsidies, surcharges on power and other infrastructural cost including transport so that the Indian textile and clothing products are made competitive in the global market.
6) Withdraw excise and customs duty on all liquid fuel meant for power generation by the textile industry ( Tamil Nadu alone accounts for 1/3rd of the textile business in the country facing 50% power shortage and the trend is likely to continue for another three years)
7) Refund accumulated Cenvat Credit
We fervently hope that the Hon'ble Minister would favourably consider our above submissions and announce a comprehensive package for the mother industry and make this industry most vibrant in the coming years.
• Withdraw 5% export incentive offered for cotton and also curtail the bulk discount sales as practiced by the CCI and NAFED which benefited only the cotton traders and the competing countries like China, Pakistan, Thailand and Bangladesh.
• Streamline the roles of CCI and NAFED particularly the procurement and sales policy and ensure that the benefits reach only the cotton farmers and the industry and not the handful number of traders as happened during the current cotton season.
• Revamp the minimum support price for raw cotton on a scientific basis so that the interests of both the cotton farmers and the textile mills are taken care of.
2) Manmade Fibres
Withdraw import duty and the central excise duty on manmade fibre including their intermediaries so as to benefit the weaker section of the people. Since the cotton textiles have become expensive, the poorer section of the society can afford only the synthetic textiles. Currently, the consumption of cotton and synthetic textiles in India is only in the ratio of 60:40 as against the reverse globally.
3) Considering the undue delay in reimbursing TUF interest subsidy and erode the working capital of mills, either make the interest subsidy as nett of interest or convert all the Government dues including TUF subsidy, TED etc., into working capital margin money.
4) Relax the banking norms particularly for CDR proposals and moratorium on repayment of term loans so that NPAs are avoided and also extend the repayment period for TUF loans to 15 years.
5) Export Incentive
• Reinstate the interest subvention of 4% on export credit effective from October 2008.
• Increase the duty drawback taking care of all State levies, cross subsidies, surcharges on power and other infrastructural cost including transport so that the Indian textile and clothing products are made competitive in the global market.
6) Withdraw excise and customs duty on all liquid fuel meant for power generation by the textile industry ( Tamil Nadu alone accounts for 1/3rd of the textile business in the country facing 50% power shortage and the trend is likely to continue for another three years)
7) Refund accumulated Cenvat Credit
We fervently hope that the Hon'ble Minister would favourably consider our above submissions and announce a comprehensive package for the mother industry and make this industry most vibrant in the coming years.
Southern India Mills' Association (Sima)
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