The Union Budget has given duty exemption to automatic shuttleless looms for modernisation of silk reeling and processing.

The Finance Minister has given duty concessions of basic customs duty of 5 per cent to shuttleless looms, parts / components of shuttleless looms by actual users for silk weaving and specified silk machinery.

Also for duty concession, automatic silk reeling and processing machinery and their accessories including cocoon assorting machines, cocoon peeling machines, vacuum permeation machine, cocoon cooking machine, reeled silk humidifier, bale press and raw silk testing equipments has been included.

The silk industry which is facing huge competition from China on quality as well as price believes that the proposal on duty concessions is not enough.

However, the present proposal will help the industry to acquire latest technology, additional strength and competitiveness.

Mr B.L. Srinivas, Secretary, Karnataka Small Scale Industries Association, said: “With regard to the import of auto shuttleless looms from basic customs duty of 5 per cent and full exemption on basic duty to automatic silk reeling, processing machinery and parts it is an opportunity for the silk textiles, sericulture industry to scale up its technology with higher productivity and competitive strength.”

“To off-set this advantage of China to a certain extent, our Finance Minister has thought it fit to give some relief by way of waiver of customs duty to the silk reeling and weaving machinery,” said Mr N.S. Srinivas Murthy, former President, FKCCI. “Definitely this cannot be taken as a major step towards competing with Chinese silk,” he added.

The silk industry is disappointed that their demand for immediate restoration of import duty on silk yarn to 30 per cent from 5 per cent and a special package of Rs 300 crore for sericulture was not addressed.

>anil.u@thehindu.co.in

Related Topics
comment COMMENT NOW