Inverted Duty Structure Required For Raw Silk & Silk Fabric Import.

The Federation of Indian Export Organizations (FIEO) has suggested an inverted duty structure for the import of both raw silk as well as silk fabrics.

FIEO revealed that the import duty structure on raw silk should aim at maximum benefit of the weaving community. The import duty on raw silk should be structured in such a way that the weavers get a frequent flow of work as well as income.

Currently, the import duty on raw silk is 30 percent whereas that on silk fabrics is 10 percent. As such, the powerlooms manufacturing silk fabrics are confronted with grave problems.

Throughout the world, import duty on raw materials is less than that of the finished goods, whereas in India, silk fabric is less expensive compared to the import of raw silk.

Silk weavers constitute a significant section of the workforce in the textile sector and are adversely affected because of the discrepancy in the import duty rates of raw silk and silk fabrics.

Source : fibre2fashion.com