Economy

Textile industry asks Govt to ban import of used clothes from China, Bangladesh and Indonesia

Our Bureau Mumbai | Updated on October 20, 2019 Published on October 20, 2019

The committee has also sought adequate safeguard measures on imports of fibres, yarns, fabrics and readymade garments

The newly formed National Committee on Textiles and Clothing has urged the government to stop the import of used clothes from China, Bangladesh and Indonesia as the  domestic textile industry is reeling under falling exports, rising imports and slowing  demand.

The committee has also sought adequate safeguard measures on imports of fibres, yarns, fabrics and readymade garments and called for extending the benefits of enhanced Merchandise Exports under India Scheme and Rebate of State and Central Taxes and Levies on Export of Garments till overall scheme on Remission of Duties or Taxes on Export Product comes into force.

Also read: Textile mills in TN appeal for status quo on energy policies

Steering committee

Bogged down by various issues, textile and clothing associations such as Cotton Textile Export Promotion Council, Apparel Export Promotion Council, Clothing Manufacturers Association of India, Synthetic and Rayon Textiles Export Promotion Council and Confederation of Indian Textile Industry have formed a steering committee – the National Committee on Textiles and Clothing (NCTC) – under the chairmanship of T Rajkumar, Chairman, CITI.

The NCTC has submitted a memorandum to  Commerce Minister  Piyush Goyal and sought a two-year moratorium on interest and loan repayment or  provision for additional liquidity to support the financially stressed textile units as a short-term policy measure to bail out the struggling industry.

The industry also  apprised Goyal of the issues related  to GST, the ease of doing business and Regional Comprehensive Economic Partnership negotiations.

It has urged Cotton Corporation of India to factor in low international prices when procuring cotton under Minimum Support Price to protect the farmers’ interests. Domestic prices are trading firm due to high MSP while prices in global markets have fallen sharply on the back of a bumper crop. This has led to sharp spike in imports even as some domestic farmers are finding it difficult o sell their cotton at MSP to CCI.

Plea to FM

A NCTC delegation led by Rajkumar also met  Finance Minister Nirmala Sitharaman  and submitted a memorandum  on the urgent need to release the pending claims under various incentive schemes; urging banks to expeditiously upload documents for release of TUF (Technology Upgradation Fund) subsidy, reducing the margin money for raising working capital from 25 per cent to 10 per cent and extend 5 per cent interest subvention  to all textiles and clothing export products.

Published on October 20, 2019
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