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Gujarat's textile industry demands tax on Chinese fabrics
Jul '17
The textile sector of Gujarat has urged the government to impose import duty on Chinese fabrics to protect small and medium companies. Pandesara Weavers' Cooperative Society Ltd and Southern Gujarat Chamber of Commerce and Industry (SGCCI) have already submitted presentations to the commerce ministry and the Confederation of Indian Industries (CII).

SGCCI has said that Chinese fabrics are heavily under-voiced. The import has already reached Rs 5,500 crore, but it could be over Rs 10,000 crore.

The Chinese government provides subsidies to the country’s textile sector and SGCCI has provided a list of all the benefits that they enjoy, said media reports quoting PM Shah, president, SGCCI. These subsidies reduce production cost per unit in China, thus making it difficult for Indian powerloom weavers.

“The fabric quality imported from China is of synthetic fibre and man-made as cotton is costly in China as compared to India. This synthetic fibre fabric has created an increase in demand in the SMEs of Surat. This imported fabric is highly under-invoiced and would be valued around Rs 10,000 crore,” said Ashish Gujarati, president, Pandesara Weavers' Cooperative Society Ltd.

India is losing out on the output despite possessing the production capacity, resulting in unemployment in the sector, said Gujarati. Fabrics imported from China are being priced anywhere between Rs 5 and Rs 15 per square metre, which is very cheap. Gujarati said that the fabrics should be priced at a minimum of Rs 50 per metre.

He added that immediate steps should be taken to curb imports and halt clearance of undervalued fabrics by imposing heavy import duties apart from levying duties on man-made and fibre based fabrics.

Import of fabrics should only be allowed under the automatic advancement scheme for the actual users, said Gujarati. (KD)

Fibre2Fashion News Desk – India

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