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Textile industry appeals for better weightage to domestic market

L N Revathy Coimbatore | Updated on January 23, 2018

textile

The industry faces two challenges – one on the raw material front and the other on market access.

Textile industry sources allege the government of not giving due weightage to the domestic industry to enable it to grab the emerging global opportunities.

“The industry has been passing through severe recession for almost 18 months due to glut in the global market, market access related issues, delay in conclusion of FTAs, undue delay in disbursement of TUF subsidies and a host of other issues. The Ministry of Textiles as also the Industry and Commerce Ministry have sought various supportive policy measures from the Ministry of Finance and PMO to revive the Indian textile industry. While the Centre looks to address macro issues particularly towards controlling inflation, improving general economic conditions, infrastructure and measures aimed at ease of doing business, the weightage given to the textile industry is not enough,” says M Senthilkumar, Chairman, The Southern India Mills’ Association.

Explaining the plight of the industry to renowned economist and corporate advisor S Gurumurthy, the SIMA Chief said that the industry faces two challenges – one on the raw material front and the other on market access.

Highlighting the 24.3 per cent decline in overall exports during the first nine months of the current calendar year, he said “cotton textiles fell by 3.58 per cent, textiles and clothing by 5.71 per cent and garments by 12.02 per cent. Textiles and clothing exports showed a marginal growth of 0.54 per cent during the first half of the current fiscal as compared to the corresponding period of the previous year. World trade has been undergoing certain structural changes and this has been having a severe impact on Indian exports,” stressing the need for a slew of policy measures to bail out the ailing textile sector.

The SIMA Chief’s appeal includes release of adequate funds to clear all pending TUF subsidies, 3 per cent interest subvention for all textile products, providing suitable market specific incentives under MEIS till FTAs are concluded, reducing hank yarn obligation to 20 per cent (from 40), urging Cotton Corporation to follow industry-friendly cotton trading policy, removing 5 per cent import duty, 4 per cent special additional duty, anti-dumping duty, reducing central excise duty to 6 per cent so as to make MMF available at international price etc.

Naushad Parikh, Chairman, Confederation of Indian Textile Industry urged the need for addressing the raw material issue and implement direct transfer of cotton subsidy to farmers to resolve issues relating to cotton and duty structure on manmade fibre (MMF).

Published on October 28, 2015

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