By Our Staff Reporter, MUMBAI, MAR. 10
The Textile Association of Indian – New Delhi Unit has called upon the government to lend its support to revitalise the Indian textile industry which is presently confronted many problems.
The industry and government have recognized the need for a fibre neutral policy excise regime for the textile industry, in order to realize the immense potential for industrial growth in ailing Polyester Man Made Fibre (MMF) Industry.
A reduction in the Excise Duty in MMF in the presently budget would have helped in achieving this objective. This may not have led to revenue loss, since the demand and consequent production will increase thereby increasing the revenue, informed Mr. R. K. Vij, President, TAI – New Delhi Unit.
He mentioned that the Finance Minister had mentioned in his budget speech that if there is an industrial growth, the economy would grow. With the cost of production going up in China, the MMF based textile industry of India would have an opportunity of opening up for expansion of its market share.
Further, in order to reinforce our demand for parity in duties with cotton fibre, in our neighbouring countries like China, Pakistan, Sri Lanka, Indonesia, Thailand and Turkey there is no difference in duties on MMF and cotton fibre, Mr. Vij pointed out.
Another measure suggested by TAI for helping the ailing textile industry is the abolition of S.A.D. as number of inputs have to be imported due to non-availability / shortage in the domestic market and an additional burden is imposed on the manufacturer – importer by levying S.A.D. As the refund of SA.D. is allowed to the traders, the same facility should be extended to all the manufacturers – importers.
This will help the industry in their working capital requirement which will lead to higher industrial growth and will lower cost of finished goods, Mr. Vij said and also recommended refund of already accumulated S.A.D. with manufacturers.
With regard to customs duty on titanium dioxide and spin finish oil, TAI Chief noted that all the major raw materials used for the MMF industry attract 5% Basic Custom Duty (B.C.D.) but inputs like Titanium Dioxide and Spin Finish Oil are not available locally and attract higher duty of 10% and 7.5% respectively. This should be brought down in line with the duty on major raw materials, he suggested.
Mr. Vij also urged for extension in export obligations period of advance authorizations. Due to slowdown in domestic as well as in export markets all over the world, exporters are finding it difficult to complete their export obligations on time. TAI has, therefore, requested that a
validity period of 36 months, as allowed earlier, is also allowed for completion of export obligations against present position of 18 months. (Source: Tecoya rend)