Interviews
MMF fabric sector expects support from next budget
19 Dec '09
2 min read
The man-made fibre (MMF) fabric industry is expecting a supportive budget for year 2010-11 after witnessing demand fall in the domestic markets. The Federation of Indian Art Silk Weaving Industry (FIASWI) proposed various policy measures for Indian textile industry, in the pre-budget recommendations to Union Textile Ministry, by considering the statutory and legal framework arising out of India's commitment to World Trade Organization (WTO).
In a bid to provide level playing field to the manufacturers of man-made fabric in Surat and other power-loom centres across the country, FIASWI Chairman Mr. Arun Jariwala urged to implement uniform excise duty of 4 percent on all types of yarn, fabrics and garments. He also recommended that, yarn from man-made fibres should be exempted from the 4 percent excise duty as cotton yarn does not attract any mandatory duty.
Specific duty on cheap imported fabric should be continued in order to protect the decentralized power-loom sector, as this sector contributes 92 percent to production of man-made fabrics, and offers direct and indirect employment to more than 10 million people, said the Chairman.
Only 22 percent of the total man-made fabric produced in India is shipped overseas, whereas cotton fabric export accounts for 35 percent of its overall production. A special arrangement should be made to encompass man-made fabric and garments into focus scheme with added benefits under the duty draw back scheme, demanded the industry leaders.
Moreover, demands have also been made to impose four percent excise duty on textile machinery, spare parts, imported machinery, and uniform custom duty of 30 percent on silk yarn and cloth import, as well as to implement goods and service tax (GST) after two years, informed Mr. Jariwala.
In a bid to provide level playing field to the manufacturers of man-made fabric in Surat and other power-loom centres across the country, FIASWI Chairman Mr. Arun Jariwala urged to implement uniform excise duty of 4 percent on all types of yarn, fabrics and garments. He also recommended that, yarn from man-made fibres should be exempted from the 4 percent excise duty as cotton yarn does not attract any mandatory duty.
Specific duty on cheap imported fabric should be continued in order to protect the decentralized power-loom sector, as this sector contributes 92 percent to production of man-made fabrics, and offers direct and indirect employment to more than 10 million people, said the Chairman.
Only 22 percent of the total man-made fabric produced in India is shipped overseas, whereas cotton fabric export accounts for 35 percent of its overall production. A special arrangement should be made to encompass man-made fabric and garments into focus scheme with added benefits under the duty draw back scheme, demanded the industry leaders.
Moreover, demands have also been made to impose four percent excise duty on textile machinery, spare parts, imported machinery, and uniform custom duty of 30 percent on silk yarn and cloth import, as well as to implement goods and service tax (GST) after two years, informed Mr. Jariwala.
Fibre2fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
