Business Daily from THE HINDU group of publications
Friday, Jun 27, 2008
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Business Daily from THE HINDU group of publications Friday, Jun 27, 2008 ePaper | Mobile/PDA Version | Audio |
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Industry & Economy
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Textiles Ministry in favour of cutting import duty on cotton
The Government initiated several relief measures including continuation of the TUFS and Scheme for Integrated Textile Parks. – Mr Shankarsinh Vaghela 
Our Bureau New Delhi, June 26 The Union Textile Minister, Mr Shankarsinh Vaghela, today said that he would take a delegation to the Prime Minister to urge him to reduce import duty on cotton as the textile industry has been under pressure by low profit margin and rupee appreciation. Addressing a news conference here, Mr Vaghela said that import duty on cotton at 10 per cent currently needs to be reduced to help consuming textile industry as cotton is the single important raw material in production. He said that due to focussed incentives provided by the Government to cotton growers in the past four years, cotton production has shown a consistent growth. It went up from 244 lakh bales (170 kg each) in the cotton season (October-September) 2005-06 to 270 lakh bales in 2006-07 cotton season and is expected to touch 315 lakh bales in the 2007-08 season which would end in another three months. He said the productivity of cotton had jumped from 399 kg a hectare in the cotton season of 2003-04 to 553 kg a hectare in 2007-08. He said that while the country exported 58 lakh bales of cotton in the 2006-07 season, it is likely to touch 65 lakh bales in the current season. As a result, cotton imports have plummeted from around 17 lakh bales in 2002-03 to five lakh bales in 2006-07 and were expected to be around 6.50 lakh bales. Mr Vaghela said that since textile industry requires some speciality cotton from abroad and since the country has become a net exporter of cotton, the Government was not keen on disturbing India’s image as a reliable supplier of cotton which also helps domestic cotton growers realise higher prices. Hence the proposal to allow more import of cotton at reduced duty so that industry could meet its demand for this important raw material in its growing value chain for diversified and blended textile products. Textile exportsCommenting on exports, he said that in 2007-08, India’s textile exports were $20.5 billion registering a growth of 9.4 per cent in dollar terms against $18.73 billion in the previous fiscal. He said the main contributory factor for the relatively modest export performance was the appreciation of the rupee vis-À-vis the US dollar and the perceptible slowdown in the US economy. He said the Government initiated several relief measures including continuation of the Technology Upgradation Fund Scheme and Scheme for Integrated Textile Parks and the Technology Mission on Cotton in the ongoing 11th Plan. He said in the long run there is a need to improve infrastructure, reform labour laws and create a new business orientation by the industry in line with global trends. He said the Government would foster the development and growth of technical textiles in the current Plan at an estimated cost of Rs 44 crore and four centres of excellence for Meditech, Geotech, Agritech and Buiidtech group of technical textiles would be set up under the scheme. He said the Government would create a Development Council for Technical Textiles to identify the problems of the industry as technical textiles are an emerging industry with a potential to reach $127 billion by 2010. He said that in order to improve the human resources for enabling the textile industry to meet the global challenges, the opening of new National Institute of Fashion Technology (NIFT) at Patna, Shilliong and Bhopal are at an advanced stage, besides the existing seven centres of NIFT at New Delhi, Bangalore, Chennai, Gandhinagar, Hyderabad, Kolkata, Mumbai and Rae Bareilly. Textile body for suspension of cotton exports till Dec More Stories on : Textiles | Exports & Imports | Excise and Customs
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