More Duty on Chinese Fabric Demanded

FIASWIThe Federation of Indian Art Silk Weaving Industry (FIASWI) has expressed concern over the huge increase in import of man-made fabric (MMF) in 2013-14 from China, Taiwan and South Korea. It said this has reduced the demand of MMF fabric manufactured in Surat, Maharashtra and other parts of the country.

The situation in the power loom sector across India is very depressing due to low availability of man-made filament yarn and huge imports of the fabric. The fabric imported from China, Taiwan and Korea attracts around 10% customs duty against 12% excise duty on man-made fabric manufactured and sold in India.

“A person using cotton fabric worth Rs 100 per meter does not pay any duty while a poor person wearing synthetic filament fabric costing less than Rs 20 per meter has to pay 12% duty,” FIASWI chairman Mr. Arun Jariwala said.

Surat is the country’s biggest manufacturer of man-made fabric with annual production pegged at 1,000 million meter. The power loom sector has an installed capacity of around 6 lakh machines, employing over 5 lakh workers.

During 2013-14, import of fabric from China increased 79.49% in terms of quantity followed by 4.15% and 0.89% from Taiwan and Korea respectively. The total import of fabric from these countries accounted for 84.56%.

Mr. Jariwala said, “China is able to dump huge quantity of fabric due to subsidy of 29% given for exports of this item by the Chinese government.” Import duty on fabric to be hiked from 10% to 30% to discourage Chinese manufacturers, the FIASWI said.

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