Financial Daily from THE HINDU group of publications
Thursday, Dec 23, 2004

Cross Currency

Group Sites

Industry & Economy - Textiles

Mills call for cut in customs duty on synthetic yarn

Our Bureau

Mr Vinod K. Ladia (left), Chairman, Indian Cotton Mills' Federation, with Mr R.L. Toshniwal, President, Indian Spinners' Association, at a press conference in the Capital on Wednesday. - Kamal Narang

New Delhi , Dec. 22

THE domestic mills sector has called for a lowering of customs duty on synthetic yarn to check exploitative pricing by domestic suppliers.

The Chairman of Indian Cotton Mills' Federation (ICMF), Mr V.K. Ladia, said the country's synthetic yarn production had stagnated at six lakh tonnes per annum since 1997 due to the polyester staple fibre (PSF) duopoly of Reliance and Indo Rama.

"The producers need to look at their prices and try to expand the market, instead of trying to squeeze more profits from the stagnating market," he said.

Speaking at the ICMF press conference, Mr R.L. Toshniwal of the Indian Spinners' Association, said: "The increasing difference between prices of cotton and synthetic yarn was a major cause of concern for the spinning industry."

He said that in the case of pure cotton, India has close to 25 per cent of the market. "It is the markets for blended and synthetic textiles that India will have to look at to increase its share of international trade. If prices of synthetic yarn continue to be high our blended and synthetic products will become uncompetitive," he said.

He said while the Government could help by bringing down excise on synthetic yarn and reducing customs duty, producers would also strive to reduce their prices.

"While the Government seems open to the idea of reducing excise on synthetic yarn, the decrease in customs duty will check arbitrary pricing by Indian manufacturers," he said.

More Stories on : Textiles | Excise and Customs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ISMA flays oil firms for slow progress in `gasohol' programme

Karnataka: Plea to lift ban on online lottery
`Nitraa' furniture finds demand from star hotels
Assocham wants CST phased out
FICCI outlines measures to boost GDP growth
EEPC for full-blown VAT as alternative to DEPB scheme — Seeks broad-based drawback in interim
`Future of multilateral trading may hinge on national sovereignty'
Infrastructure growth dips to 5% in Nov
Bidding for projects in other countries — Malaysian PM keen on tie-up with India
New kerosene sharing formula for oil PSUs
IOC-IBP merger swap ratio at 125:100
Reliance spat: KPC gas supply bids face uncertainty
ADB approves $400-m loan to upgrade power transmission grid
VAT implementation on track: Finance Minister
SOPA seeks cut in M.P. mandi tax
CCEA clears 20 lakh cotton bales for export
Mills call for cut in customs duty on synthetic yarn
Kerala: Water levels decline
Singareni Day
Mangalore cashew body to expand horizon
Cabinet nod for spacecraft project
Vizianagaram to get ceramic park
Win-Medicare unveils emergency contraceptive pills
Capart to speed up funding in Kerala
AEPZ for medicinal plants at Tuticorin
Govt initiates steps to improve tourism sector
HLL seeks States' help to tackle counterfeiting

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line