SIMA seeks more than just a solace for textile industry
06 Dec '07
2 min read
P Chidambaram, Union Minister of Finance had recently announced sops for the textile industry and the decision was heartily welcomed by the industry. However, South India Mills Association (SIMA) has urged the Government to eliminate one percent export incentive that was provided for cotton and to bring down the cotton import duty from 10 to 5 percent.
Officials from SIMA believe that reduced customs duty for man-made fibre and an added grant of credit would give only temporary relief to the textile industry and the main problem would persist nonetheless.
Moreover, experts from the industry also held that the Government was taking an unhelpful measure for the synthetic spinning industry by dropping customs duty by five percent on spun yarn of manmade fibres. In fact, this measure would only reduce the international competitiveness of the industry which is already suffering the consequences of cheaper imports from countries like China.
The stock of yarn had nearly doubled because of a droop in the market which also affected the utilization rate that went down by 20 percent. What is required is the removal of duty on man-made fibres and the imposition of anti-dumping duty on synthetic spun yarn to safeguard the interests of domestic spinners.
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