Interviews
FIASWI welcomes rationalization of duties in Budget 2007-2008
06 Mar '07
3 min read
Union Budget 2007-2008 is out and textile players are happy to know that TUFS has been extended.
A. N. Jariwala, Chairman, FEDERATION OF INDIAN ART SILK WEAVING INDUSTRY, thanks Shankersinh Vaghela, Union Textile Minister for extending TUFS in 11th Five Year Plan.
We thank you Sir, for extending the TUF Scheme during the 11th Five Year Plan and also getting larger allocation in the Budget. We also welcome the proposal in the Budget for reduction of Customs Duty on Polyester filament yarn from 10% to 7.5%.
However, this reduction in Customs duty will not have any impact on imports of Polyester filament yarn on account of Anti-dumping Duty on imports from China PR, Indonesia, Malaysia, Korea RP, Chinese Taipei, Turkey and Thailand.
The domestic Spinners have welcomed the Budget by increasing the prices of indigenous Polyester filament yarn by Rs.2 to Rs.5 per kg. on 1st March, 2007, inspite of the reduction in Customs Duty on their raw materials, i.e. D.M.T., P.T.A., etc. Besides, the Customs duty on PFY is 7.5% + 4% Special CVD, i.e. a total of 11.5%, while the Customs duty on fabrics is 10%. Thus, the raw material prices are higher than the finished products i.e. fabrics.
The export of Polyester filament yarn including Partially Oriented Yarn (POY) and Polyester Texturised Yarn (PTY) and its fabrics is showing an alarming situation. As per the data from the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), While the export of Polyester fabrics has increased by 13.30% during April-December 2006 compared to the same period in 2005, the total exports of PFY/ POY/ PTY has increased by 100% during the same period. This has resulted into shortage of yarns to that extent, fluctuation in prices of indigenous yarns, closing down of powerloom units and throwing workers out of employment. It is also discouraging the export of value added fabrics as yarn export is growing at an alarming rate, as per the above data.
A. N. Jariwala, Chairman, FEDERATION OF INDIAN ART SILK WEAVING INDUSTRY, thanks Shankersinh Vaghela, Union Textile Minister for extending TUFS in 11th Five Year Plan.
We thank you Sir, for extending the TUF Scheme during the 11th Five Year Plan and also getting larger allocation in the Budget. We also welcome the proposal in the Budget for reduction of Customs Duty on Polyester filament yarn from 10% to 7.5%.
However, this reduction in Customs duty will not have any impact on imports of Polyester filament yarn on account of Anti-dumping Duty on imports from China PR, Indonesia, Malaysia, Korea RP, Chinese Taipei, Turkey and Thailand.
The domestic Spinners have welcomed the Budget by increasing the prices of indigenous Polyester filament yarn by Rs.2 to Rs.5 per kg. on 1st March, 2007, inspite of the reduction in Customs Duty on their raw materials, i.e. D.M.T., P.T.A., etc. Besides, the Customs duty on PFY is 7.5% + 4% Special CVD, i.e. a total of 11.5%, while the Customs duty on fabrics is 10%. Thus, the raw material prices are higher than the finished products i.e. fabrics.
The export of Polyester filament yarn including Partially Oriented Yarn (POY) and Polyester Texturised Yarn (PTY) and its fabrics is showing an alarming situation. As per the data from the Synthetic & Rayon Textiles Export Promotion Council (SRTEPC), While the export of Polyester fabrics has increased by 13.30% during April-December 2006 compared to the same period in 2005, the total exports of PFY/ POY/ PTY has increased by 100% during the same period. This has resulted into shortage of yarns to that extent, fluctuation in prices of indigenous yarns, closing down of powerloom units and throwing workers out of employment. It is also discouraging the export of value added fabrics as yarn export is growing at an alarming rate, as per the above data.
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