Home / Knowledge / News / Textiles / Drawback rates need to be restored - Texprocil

Drawback rates need to be restored - Texprocil

25
Jun '09
Hon'ble Union Minister of Textiles Shri Dayanidhi Maran, Dr. J. N. Singh, Joint Secretary (Textiles) and dear friends, It gives me a great pleasure to extend a warm welcome to Shri Dayanidhi Maran, Union Minister of Textiles, who has taken up the task of restoring Indian textiles on the path of rapid growth.

Within days of assuming office, Shri Maran has clearly spelled out his thrust areas to push the industry growth rate to 8-10%, which includes attracting higher investments for technology upgradation to the tune of Rs. 1,55,000 Cr over the next five years.

Sir, your visit is very crucial for us as the Indian textile industry is currently facing unprecedented challenges to its export competitiveness. The record growth achieved during the first two years of post-quota period had instilled a sense of confidence in the industry resulting in higher levels of investments for technology upgradation and creation of new capacities in order to achieve economies of scale.

Contrary to these expectations, Indian textile exporters have been facing tremendous challenges over the past two years or so and are witnessing considerable fall in exports.

India's textile exports are estimated to have declined by about 2 per cent to US$ 21.75 billion in 2008-09 as the demand has slumped in the markets of US and EU, which together account for over 60 per cent of exports.

In USA, against an overall Textiles & Clothing import growth of 0.57% from the entire world, our exports to USA recorded a decline of (-)5.95% during 2008-09, clearly indicating that India is losing out to its competitors. Same is the situation in the European Union too.

Sir, we are extremely thankful to you for taking out your precious time and holding consultations with the exporters in order to gain first hand knowledge about the problems being faced by this complex industry.

While various issues relating to Indian textile sector would be explained to you in detail by the Vice Chairman of our Council, I would like to highlight only some points.

In the short term the government needs to consider the following:

The drawback rates need to be restored to the levels existing prior to September 2008.

The quality of India's finished textile products is severely impacted on account of contamination in yarn and fabrics arising due to use of white polypropylene bags meant for packaging of fertilizers and pesticides. The contamination levels can be brought down significantly by mandating the use of coloured polypropylene bags for packing of fertilizers and pesticides. This change needs only a notification from the Ministry of Chemicals & Fertilizers and does not exert any financial burden on the stakeholders.

Sir, we have yet to receive our dues from the TUFS Scheme, refund of Service Tax on export related services and accumulated cenvat credit on capital goods.

Another important issueimpacting our competitiveness is the high cost of inland transportation. Measures such as liberalisation of inland transportation by allowing international carries to operate on domestic routes will reduce inward-outward freight. The ports like Kandla, Nhava Sheva & JNPT always have surplus containers which are transported as empty containers to other ports. If they are allowed to carry cargo to southern ports such as Cochin, Chennai and Vizag, the industry will be able to get raw material at lower transportation cost resulting in our enhanced export competitiveness.


Must ReadView All

Pic: Better Work

Apparel/Garments | On 24th Oct 2020

Positive change in Cambodian garment sector due to ILO BWP

Cambodian factories receiving the full package of services by Better...

Pic: Awaj Foundation

Apparel/Garments | On 24th Oct 2020

COVID erodes income of a third of Bangla apparel workers

Nearly a third of Bangladeshi garment workers suffered loss of...

Pic: Ralph Lauren

Fashion | On 24th Oct 2020

Ralph Lauren, Parity.org convene group to close gender gap

Ralph Lauren, which designs and markets premium lifestyle products,...

Interviews View All

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Abhishek Ralli,

Abhishek Ralli

Founded in 1962 in Agra, Guide Footwear manufactures men’s footwear for...

Marcus Hardelauf,

Marcus Hardelauf

Germany-based Textechno is one of the leading manufacturers of testing...

Asif Rahman, MIP

Asif Rahman
MIP

MIP is a manufacturer and distributor of high-performance textiles and...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search