| Date: |
04-01-2011 |
| Subject: |
Non-Cotton Exporters Seek Relief from Raw Material Cost Hike |
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New Delhi, (PTI) The man-made fibre textiles industry will seek a meeting with Finance Minister Pranab Mukherjee and demand increase in duty refunds to make up for rising raw material costs.
The duty drawback on textiles based on synthetic (man-made) fibre is eight per cent at present. The industry wants it to be raised to 10 per cent.
"We will meet the Finance Minister and request him to review the existing duty drawback rates," Synthetic and Rayon Textiles Export Promotion Council (SREPTC) Chairman V K Ladia told reporters.
The industry has been facing problems due to a sharp rise in raw-material prices, he said, adding the increase has been up to 40 per cent in the last three months.
"The exports of man-made fibre (MMF) textiles have declined in the last quarter, mainly due to a steep increase in the polyester prices -- the main input -- as the local suppliers have their monopoly and charge prices accordingly," Ladia said.
There are hurdles in imports by way of anti-dumping duty on viscose coming from China.
The prices of artificial fibre like polyester have risen to about Rs 95 per kg from Rs 68 per kg in April, while viscose prices jumped to Rs 139 per kg from Rs 110 per kg.
Ladia said weak demand from Dubai, one of the key markets for India''s MMF textiles, has also been affecting the industry''s bottomline. Moreover, Turkey, Brazil and Peru have imposed anti-dumping duties on viscose yarn and MMF fabrics to protect the interest of their domestic industry.
The major markets for Indian artificial fibre include the UAE and Saudi Arabia. However, demand for the products is picking up in new markets like Pakistan and Afghanistan.
The government has set an export target of USD 3.7 billion for man-made fibre textiles in 2010-11.
"Exports are likely to fall short of the target. I expect MMF exports to close the year with USD 3.4 billion," the council Chairman said.
The export trend was positive in the first quarter of 2010-11 with a growth rate of six per cent year-on-year.
However, the shipments declined by 25 per cent to USD 746.62 million in the second quarter compared to the same period last fiscal.
The sector directly employs about 10 million people. PTI RK PC
Source : news.in.msn.com
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