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Market access policy urgently required for textiles industry: SIMA |
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COIMBATORE: Access to markets is the first and foremost policy urgently required for the textile industry to enable it have a level playing field in global markets as there is excess production capacity, Southern India Mills' Association (SIMA) has said.
Textile exports declined in August 2015 for the ninth straight month by 20.66 per cent with overall exports reaching $26.8 billion, while exports of cotton textiles registered a negative growth of 7.39 per cent as exports touched $863.18 million in August, as against $932.02 million in August 2014, the newly elected SIMA chairman M Senthil Kumar told reporters here today.
Continuing decline in exports is a serious concern and the Centre needs to take urgent action as major importing nations like EU, Canada, China are giving preferential access to competing nations like Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam.
Abnormal duties imposed on Indian textiles are severely affecting Indian exports, he said.
Therefore, the government should expedite conclusion of Free Trade Agreements with China, EU, Australia, Canada and other countries and gain market access, he added.
Kumar urged the government to extend three per cent incentive for yarn, five per cent for fabrics and seven per cent for garments and made-ups till FTAs were signed as interim package, as the interest rate in India was between 12 per cent and 14 per cent.
He sought extension of three per cent interest subvention for all textile products to have a level playing field.
Kumar also requested the government to allocate Rs 6,500 crore as already recommended by the Textiles Ministry to clear all pending Technological Upgradation Fund subsidies, including blackout period, committed liabilities and to keep the scheme live till March 31, 2017 and bring it in a new format in the next five year plan.
Seeking removal of import duties, anti-dumping duties and reduction of Central Excise duty on man made fibre from 12.5 per cent to six per cent, the association has sought expedite implementation of GST by covering textiles and clothing products under the lowest slab considering the nature of the industry (predominantly SMEs).
Another major policy decision required for smooth going of the industry was to extend subsidies directly to cotton farmers and de-link Cotton Corporation of India from cotton trade, Kumar said.
Source : economictimes.indiatimes.com
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