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Budget evokes mixed reactions from textile sector

March 4, 2011 (India)

The Indian textile industry has delivered mixed reactions to the budgetary announcements made by the Finance Minister – Mr Pranab Mukerjee. While a few have welcomed provisions of duty cuts, they have also denounced it, due to expectations being not fulfilled.

Mr Shailendra Pandey, VP Marketing - Indian Rayon, does not see much change, other than the decrease in import duty for wood pulp by 2.5%, a major raw material consumed by viscose producers.

He considers this a good step from the government since, wood pulp prices have gone up sky high, it will help viscose producers a little bit, as duty cut is marginal. He was however relived that rumours going on since February of hike in excise duty have not been proposed.

On the other hand Mr Dilip Samsukha, Partner - Indian Silk House termed the budget balanced, since a long pending demand of reducing basic customs duty on raw silk (not thrown) has been met, since it has been reduced from 30 to 5 per cent.

He is of the opinion that, the duty cut will definitely reduce silk prices, since there has been an acute shortage of yarn, due two which, prices have gone up by 30-40% in the last six months and expects the silk industry to benefit in the long run.

Mr UK Gangopadhyay, Director - Synthetic & Art Silk Mills' Research Association (SASMIRA) does not notice any encouragement from the budget, but is also happy that, there is no negativity associated with the budget.

Mr Gangopadhyay is unhappy due to the fact that, whatever proposals had been put forward have not been accepted by the Finance Minister.

Fibre2fashion News Desk - India
More Textiles News - India...

 
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