Harish Cherukuri, Managing Director of Priyadarshini Spinning Mills Limited (PSML) has mailed his pre-budget expectations to Fibre2fashion.
Import duty on polyester and viscose is expected to be reduced from 10 to 5 percent. This will reduce the domestic cost of polyester as Reliance prices the polyester on landed cost. It should increase the domestic consumption of polyester. It will not affect viscose as Grasim's pricing policy is not related to the international price. Therefore demand for polyester and PV yarn is expected to increase. It will not have any effect on exports as Government is expected to reduce the DEPB rate commensurate with the reduction of import duty.
Government is expected to remove import duty on cotton as cotton prices have escalated significantly. This is severely impacting the industry's margins. Reduction of duty on cotton may have downward effect on the cotton prices. This will mitigate pressures being faced by the cotton mills.
Fibre2fashion News Desk - India