Exempt raw wool from import duty, demands woollen industry.

Chandigarh, November 7 : Perturbed over dwindling exports, the woollen industry is demanding exemption from import duty on raw wool, abolition of import duty on woollen textile machinery and increase in duty drawback rates.

The exports of wool and wool-blended products during April-August 2016 in the current fiscal was $177.06 million (Rs 1,186.50 crore), down 18.29% in dollar term and 14.23% in rupee term as compared to the corresponding period of 2015-16.

As far as contribution of exports is concerned, Punjab contributes 35% of the total exports, followed by Maharashtra, Rajasthan etc. Medium-sized manufacturers in Ludhiana and Amritsar are worst hit due to slowdown.

“The main reasons for the decline in India’s exports are slowdown of demand in global markets and moderation in commodity prices. India’s main export markets, mainly the US, European Union and the UAE are still going through either a slow revival or slowdown in GDP growth,” said RK Gupta, Executive Director, Wool & Woollens Export Promotion Council (W&WEPC).

Currently, 70% of our exports is concentrated to the US and European countries which are facing slowdown.

In 2014-15, India imported wool worth $349 million. The decline in wool import in the current fiscal was mainly attributed to the decline in exports owing to weak global sentiments.

He said the council also requested the Central government to abolish import duty on woollen textile machinery, which is currently around 7.5 to 15%. Their other demands include increase in duty drawback rates.

Source : tribuneindia.com