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Textile industry opposes CII on import duty

Contrary to what the Confederation of Indian Industry (CII) has said on import duties, the Indian textiles industry has said Finance Minister Yashwant Sinha should allow import of capital equipment at zero duty.

''It is a pity that India has only 10,000 shutterless looms against China's 150,000. If we do not get our acts together, China will be practically monopolising the world textile trade'', president of the Indo Rama Synthetics, Vijay Bhalla said.

The Northern India Textile Mills' Association (NITMA) has made out a strong case in favour of equipment at zero import duty without an export obligation.

''At least allow nil customs duty on the textile machinery which is not manufactured in India'', NITMA President Shishir Jaipuria said.

A large number of state-of-the art machinery items required by the industry are not available locally.

Textile Secretary Anil Kumar who also favours access to capital equipment at nil duty, recently said that permission should also be given for import of the second hand machinery which is quite advanced in technology. The only thing missing in these machines are frills.

NITMA Vice President and Executive Director of Vardhman Spinning and General Mills Ltd Sachit Jain said the Indian textile industry could compete head on anywhere in the world provided the distortions in the excise structure are removed without any more loss of time.

He said it was inexplicabe how there was no excise duty on the garment sector even after it was dereserved.

''We are saying please complete the CENVAT (Central Value Added Tax) chain and put excise on all the constituents including fibre and garment'', he said.

Vice Chairman of the Rajasthan Spinning and Weaving Mills Ltd Shekhar Agarwal said that while so much attention was being paid to the information industry by the government, the textile industry which has much more employment and exports earning potential was being dumped.

''We want due recognition of this industry by the government'', he said.

Bhalla said the most glaring anomaly in the import duty structure relates to raw material for synthetic fibres. The duty on raw material for synthetic fibres is 27.5 per cent compared to 20 per cent on finished goods.

''Nowhere in the world you have higher import duty on raw materials than the finished products'', Bhalla pointed out.

Jaipuria said unproductive practices like disproportionate excise burden on composite mills should be eliminated.

UNI

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