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Exempt MMF from import duties – CITI
Feb '11
The Confederation of Indian Textile Industry (CITI) has placed its Pre-Budget Memorandum for 2011-2012 for the perusal of the Finance Minister of India, Mr Pranab Mukerjee.

CITI has recommended that it is important to exempt duties imposed on imports of man-made fibres (MMF) to help the textile sector source the raw material in large volumes at affordable prices.

CITI has pointed out that, globally MMF is the most dominantly consumed textile fibre and the ratio between man-made fibres and cotton fibre consumption is 60:40 globally while in India it is 41:59 (2009-10).

The recommendation adds that the share of man-made fibre based textile products in India's export basket from the textile and clothing sector is even lower.

CITI has suggested that, optional excise duty for textile products may be continued at a uniform rate of four percent for all products, irrespective of the fibre content, along with which, excise duty on MMF should also be reduced to four percent.

It has further recommended withdrawal of all anti-dumping duties on MMF and not consider levying fresh anti-dumping duties to remove the anomalies in consumption pattern as well as help increase exports of MMF products from India.

Click here to read the full text of the recommendations.

Fibre2fashion News Desk - India

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