The Hindu Business Line : ICMF seeks duty cut on man-made fibres

EVEN as the Finance Minister, Mr P. Chidambaram, hinted at likely sops to enable higher growth of the man-made fabrics sector, the industry is smarting under frequent jacking up of raw material prices by the domestic producers, on the one hand, and high import duty of 20 per cent on the other.

Calling for a lowering of customs duty on man-made fibres from the existing 20 per cent to at least 10 per cent, industry players said domestic producers have been increasing prices frequently because of the "near monopoly" situation. The raw materials used by the producers, including polyester, viscose and acrylic, come under the 20 per cent customs duty bracket.

In a missive to Mr Chidambaram, the Indian Cotton Mills Federation (ICMF) has said that even for an agricultural commodity like cotton, the most-widely used raw material in the textile sector, the import duty is only 10 per cent.

In the case of man-made fibres, where more than 95 per cent of consumption in the country is from domestic production, there should not be any revenue compulsions for the Government in maintaining high duties, it said.

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