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SIMA seeks early announcement of foreign trade policy

2015-3-17
An early announcement of foreign trade policy with a slew of measures for the textile industry is essential to grab the global opportunities, according to The Southern India Mills’ Association (SIMA).
 
A delegation from SIMA met textiles minister Santosh Kumar Gangwar and submitted a detailed memorandum. The minister gave a patient hearing to submission made by SIMA and gave an assurance that their matter/views would be taken up with the commerce and finance ministries, SIMA said in a press release.
 
SIMA chairman T Rajkumar said Indian textile exports have been affected by the depreciation of euro against Indian rupee, apart from 9.6 per cent tariff disadvantage Indian textile products already have in the European Union. India is losing orders in European markets due to these factors and countries like Pakistan which have duty free access are grabbing the opportunities, he added.
 
In a press release, Rajkumar said, the textile industry has demanded for 3 per cent incentive for yarn, 5 per cent incentive for fabric and 7 per cent incentive for garments and made ups and other finished textile products under Focus Market Incentives Scheme as the industry is fully eligible as per the objectives of the scheme as being the largest employment provider which brings substantial foreign exchange earnings to the country.  
 
The delegation said the Union Budget 2015-16 has not considered any of the demands put forward by the industry, including urgent measures relating to Technology Upgradation Fund Scheme, and levies on man-made fibre duties.
 
Rajkumar said the industry had demanded for an allocation of Rs 3500 crore for the ongoing TUF schemes to meet the liabilities of the last three quarters of 2014-15 and also for the entire period of 2015-16.  But the Union Budget has allocated only Rs1520 croe which may not meet the fund requirement for even 2014-15.
 
He added that the industry had also demanded an allocation of Rs 3000 crore to meet the pending cases under TUF scheme including committed liability, left out cases and blackout period with effect from 1st April 2007 to sustain the financial viability of around Rs 65000 crore investments already made by the industry. During the meeting, textiles minister promised to take up the matter with the Ministry of Finance to ensure allotment of adequate funds in due course.

SIMA chief stated that it is essential to reduce the central excise duty on manmade fibre from 12 per cent to 6 per cent on par with cotton and also remove the 5 per cent import duty and 4 per cent special additional duty to enable the Indian textile industry to achieve a substantial growth rate in the markets of manmade textile products.

He further stated that the industry also has demanded for 5 per cent interest subvention, reduction of margin money from 25 per cent to 10 per cent and increase the credit limit from 3 months to 9 months for the cotton working capital to bring stability in cotton prices, thereby enhancing the growth rate of cotton textile industry by 3 to 5 per cent and also ensure fair prices for the cotton farmers.  

SIMA delegation thanked Gangwar for his intervention and continuous support in reducing the cost of transport through coastal shipping by over 10 per cent, and appealed to make further efforts to reduce the cost by another 20 to 30 per cent.
Source:Fibre2fashion
 
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