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Indian manufacturers seek policy intervention on hank yarn
26
Apr '18
Indian manufacturers seek policy intervention on hank yarn
Yarn manufacturing mills in Tamil Nadu have urged Indian textiles minister Smriti Irani to initiate steps to reduce hank yarn obligation from 40 per cent to 10 per cent and enable ease of doing business for the cotton textile industry after implementation of the goods and services tax (GST), which brought both cone yarn and hank yarn under 5 per cent tax rate.

This has resulted in sharp reduction in the demand for hank yarn in the post-GST era, managing directors of around 400 such mills said in similarly-worded letters to the minister.

Spinning mills, therefore, are unable to market the hank yarn and fulfill the obligation that may attract severe penal action as the obligation is covered under the Essential Commodities Act, Indian media reported citing the letters.

Such unrealistic restrictions were making the mills globally uncompetitive despite the ministry's efforts to promote exports, according to the mills.

Cotton yarn production has increased by 133 per cent from 1,321 million kg in 1987-88 to 3,079 million kg in 2009-10 despite the number of handlooms in the country reducing by about 41 per cent in the same period. The country’s spinning sector produced 4,061 million kg of cotton yarn in 2016-17, registering an increase of 207 per cent over the figures in 1987-88. (DS)

Fibre2Fashion News Desk – India


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