Home / Knowledge / News / Textiles / Textile industry seeks removal of hank yarn obligation
Textile industry seeks removal of hank yarn obligation
14
Oct '15
Indian Texpreneurs Federation (ITF), a Coimbatore based premier association for textiles, has urged the Centre to remove the hank yarn obligation, an obligation which compels yarn manufacturers to produce 40 per cent of their total yarn as hank yarn for the benefit of the handloom sector, according to media reports.

In a letter submitted to Prime Minister Narendra Modi, ITF said there is an excess of hank yarn in the country with comparatively lesser consumption.

The hank yarn obligation was originally imposed on yarn manufacturers in a notification issued in 2003 under the Essential Commodities Act, 1955 to ensure a steady supply of hank yarn, a basic raw material in handloom weaving, to the handloom sector at reasonable rates.

Most of the handloom weavers have now moved on to powerlooms or automatic looms, which has reduced the demand for hank yarns, according to ITF secretary D Prabhu. “There is hardly any demand for hank yarn due to Textile Upgradation Scheme and other initiatives of the government,” he feels.

Tamil Nadu produces 3.05 crore kg of hank yarn per month, as against the requirement of 16 lakh kg, which results in excess production of 1,880 per cent which is 18 times more than the requirement.

In such a scenario, ITF is insisting on the removal of hank yarn obligation altogether or to reduce the slab of 40 per cent to 10 per cent.

In the letter, ITF said there was an urgent need for textile-focused Free Trade Agreements (FTAs) with existing and emerging markets. It also urged the government to accommodate textiles in the lower slab of taxation in the proposed Goods and Service Tax (GST), which has the potential to transform and boost the Indian economy. (MCJ)

Fibre2Fashion News Desk - india

Must ReadView All

Textiles | On 25th May 2017

Huntsman and Clariant to have merger of equals

Huntsman Corporation and Clariant have announced that their boards of ...

Courtesy: CBRE

Apparel/Garments | On 25th May 2017

European cities preferred for retailer expansion: CBRE

European cities were the preferred new destination for international...

Apparel/Garments | On 25th May 2017

Guess records $458.6 million revenue for Q1 2018

For the first quarter of fiscal 2018, the net revenue of American...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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