The expected decision by the Indian Government to grant concession on import duty of man-made fabrics (MMF) in order to improve the garment exports would pose a threat to the powerloom weaving and textile processing sector in the country.
“The Central Government is considering providing concession in import duties on man-made fabrics. Such a move will destabilize the powerloom weaving sector and as a result, thousands of workers in the weaving industry will lose their jobs, Mr. Arun Jariwala, Chairman of Federation of Indian Art Silk Weaving Industry (FIASWI), told fibre2fashion.
In the pre-budget memorandum submitted by the chairman of Apparel Export Promotion Council, Dr. A Sakthivel, the council had proposed for the reduction of customs duty to flat 5 percent on synthetics and blended fabrics to enhance 100 percent garment exports in three years.
According to Mr. Jariwala, the proposal put forward by the clothing exporters will lead to closure of several man-made fabric hubs in the country. “We have opposed the proposal by the apparel manufacturers for concession on import duty of fabrics,” he added.
In the last five years, the production of man-made fabrics has grown by only 9.61 percent against the projected 56.98 percent. During April to November 2012, the total production of man-made fabric declined to 1.27 billion sq m as compared to 1.39 billion sq m registered in the same period in 2011.
