In a bid to salvage the dwindling cotton yarn exports, the textile industry has sought extension of the three per cent interest subvention, along with other export benefits to cotton yarn under MEIS and IES on a par with other textile products from the ministry of textiles.
In representations by industry bodies led by the Southern India Mills Association, the government has been asked to announce measures to salvage the textile value chains and dwindling exports. The industry has sought a reduction in central excise duty from 12.5 to six per cent and removal of the five per cent import duty and four per cent special additional duty levied on the import of man-made fibre.
Currently, Indian man-made fibre are 23 per cent more expensive globally.
“We are thankful to the ministry for taking measures such as announcing the Amended TUF Scheme with a record allocation of Rs 17,822 crore and taking efforts for promoting coastal movement of cotton from Gujarat to Tamil Nadu in a cost effective manner, apart from enhancing duty drawback rates for various textile products, particularly garments,” the industry stated in its representation letter to the ministry.
“While highly appreciating the Ministry of Textiles for its unstinted and tireless efforts to safeguard the mother industry, we humbly appeal to the (textile) minister to kindly address the following issues — create a level playing field in globalised environment and to enable the industry to achieve the vision of $300 billion textile business size by 2023 from the current level of $110 billion as set by the Prime Minister,” it further stated.
Among other measures, the industry has demanded fixing of lowest slab for textiles in GST, apart from seeking implementation of the Direct Payment Deficiency System in lieu of MSP operations being exercised by CCI and other federations in order to compensate farmers directly whenever the cotton market price rules below MSP.
Meanwhile, the industry has also suggested a mandatory duty of two per cent to be levied across the man-made fibre textile value chain right from yarn to finished goods which would fetch more revenue to the Government beyond the compensatory value for the proposed reduction.
Source: Business Standard