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Silk sector hails proposal to ease duty on raw silk
05 Mar '11
2 min read
In the recent budget announced by the Finance Minister of India, he reduced customs duty on raw silk (not thrown) from 30% to 5%, to the relief of the Indian silk sector.
This was a long pending demand of the Indian silk industry, which was protesting the inverted duty structure, wherein, 30% duty was levied on raw silk and just 10% on silk fabrics.
Chinese raw silk prices jumped from only Rs 1,750 per kg in August 2010 to a whopping Rs 3,300 per kg in December 2010, an astounding hike of 88 percent in just five months.
The Banarasi Vastra Udyog Sangh has wholeheartedly welcomed this proposal from the government.
The body had also demanded that customs duty on silk fabrics be hiked from 10% to 40%. The body had been lobbying for long to dismantle the inverted duty structure.
The Sangh among other proposals, had demanded, increase in export duty on cotton and cotton yarn, opening depots to ease availability of cotton and silk yarn, waiving of electricity dues of weavers, etc.
The Sangh has demanded these requests too need to be looked in to save the 2,500 year old cottage industry, generating employment for millions of people.
This was a long pending demand of the Indian silk industry, which was protesting the inverted duty structure, wherein, 30% duty was levied on raw silk and just 10% on silk fabrics.
Chinese raw silk prices jumped from only Rs 1,750 per kg in August 2010 to a whopping Rs 3,300 per kg in December 2010, an astounding hike of 88 percent in just five months.
The Banarasi Vastra Udyog Sangh has wholeheartedly welcomed this proposal from the government.
The body had also demanded that customs duty on silk fabrics be hiked from 10% to 40%. The body had been lobbying for long to dismantle the inverted duty structure.
The Sangh among other proposals, had demanded, increase in export duty on cotton and cotton yarn, opening depots to ease availability of cotton and silk yarn, waiving of electricity dues of weavers, etc.
The Sangh has demanded these requests too need to be looked in to save the 2,500 year old cottage industry, generating employment for millions of people.
Fibre2fashion News Desk - India
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