Prices of manmade yarn have increased by 3-4 percent, due to the effect of the budgetary announcement in which excise duty on synthetic yarn has been boosted from 4 percent to 8 percent.
It is obligatory for units to pay excise duty at the fibre and yarn stage, but optional if further processing of the synthetic yarn is undertaken. This decision has been opposed tooth and nail by the textile sector.
Commenting on the surge in prices, the Managing Director of Supreme Texmart, Mr Sanjay Gupta said that, “4% additional duty has been imposed on synthetic yarns increasing burden in cost of raw material, manufacturing, finished products etc”.
He added by saying, “This has also raised the challenges from China, since due to this decision, bank credit will drop, unemployment will increase and ultimately will disturb economy of the industry”.
He concluded by saying, “The only alternative is to increase the prices of our products or shift to some other prospective markets, or shift from existing product to another product”.
Fibre2fashion News Desk - India
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