Textile industry seeks duty incentives, export package.

 NEW DELHI: The textile industry has intensified its efforts to get duty on man-made fibres removed in the Budget itself, even when the Textile Ministry is in the process of setting up an expert group to examine the issue.

In its pre-Budget memorandum to Finance Minister, Mr Pranab Mukherjee, the Confederation of Indian Textile Industry (CITI) said, "Excise and customs duties on all man-made fibre may be removed. Countervailing duties imposed on import of all fibres may be removed, since access to cheaper global fibres will improve cost-competitiveness.''

Textile Minister, Mr Dayanidhi Maran had last week said an expert group would be appointed within 100 days to chalk out a roadmap for the fibre-neutral policy.

He said the new policy should be in place within a year. While there is no customs duty on cotton, the import of synthetic fibre attracts 5 per cent, putting the user of the man-made fibre at a disadvantage.

CITI has asked for a special export package, since 50 per cent of total production in the sector gets exported. "The significant decline in demand in major markets and additional incentives introduced by our competitors during the last one year, make it essential that the industry be assisted with proper policy to make it more competitive,'' it said.

Source : PTI