SIMA chief said the reduction of customs duty on polyester fibre and yarn from 10% to 7.5% and also the customs duty on its raw material such as DMT, PTA, MEG from 10% to 7.5% would create a level playing field to certain extent. However, he felt that the industry had been demanding for zero duty to increase the share of synthetic fibre consumption and also enable the industry to provide clothing to the people below the poverty line at affordable prices.
He further pointed out that the budget has not considered other man-made fibres such as Viscose Stable Fibre, Acrylic Fibre for duty reduction, end products of which are used by the common man.
Mr Arumugam pained to note that the announcement with reference to continuation of Technology Mission on Cotton (TMC) which is expiring on 31st March 2007, did not find a place in the budget. He felt that the cotton production which was ranging between 150 lakh bales and 175 lakh bales per year for decades could be improved to Rs.270 lakh bales during the current cotton season due to TMC.
He added that the Scheme helped India to improve its cotton productivity from 300 kgs per hectare over to 500 kgs per hectare within a short period and helped the cotton farmers to increase their income substantially. SIMA Chairman felt that India has tremendous potential to improve the productivity and quality of cotton when compared to world average productivity of 747 kgs per hectare.
He has welcomed the announcement with regard to reduction of CST from 4% to 3% and its subsequent phase out in the years to come, which he felt would put an end to barriers in inter-State transactions. Mr Arumugam has opined that the enhanced exemption limit of Rs.1.5 crores from Rs.1 crore extended to the small scale industry in excise duty would encourage the development of this sector.
Mr S V Arumugam has also welcomed the reduction in peak rate duty on non-agricultural products from 12.5% to 10%. He felt that this would reduce the cost of machinery import. He has further welcomed the various schemes announced and funds allotted for developing the infrastructure, particularly power and inland road in the country.
Fibre2fashion - News Desk
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