SME Times News Bureau | 25 Jan, 2021
The Northern India Textile Mills' Association (NITMA) has urged the
government to raise customs duty on man-made yarns to 10 per cent in the
upcoming Union Budget.
The customs duty on man-made yarn is currently at 5 per cent.
According
to the industry body, monthly average imports of Virgin Polyester Spun
Yarn have increased manifold from 2015 to 2020. Imports from Vietnam
alone have increased over 100 times, as per NITMA.
Sanjay Garg,
President of NITMA said that representations regarding the import
concerns have been sent to the ministries of finance and textiles.
He
noted that the man-made yarn sector is one of the largest
employment-generating segments within the textile industry and is highly
capital and labour-intensive industry as well.
Garg was of the
view that the unreasonably low-priced imports of man-made yarn into
India have been causing considerable amount of injury to domestic
manufacturers for around the last five years.
In a statement,
NITMA said that the surge in imports may damage the domestic man-made
fibre (MMF) industry and may lead to non-performing assets and closure
of units along with huge employment loss.
"As a recapitulation,
he (Garg) humbly appealed to the Ministry of Finance and Ministry of
Textiles to consider increasing the customs duty on man-made yarn from
its present level of 5 per cent to 10 per cent immediately in the
ensuing Union Budget for the growth and expansion of domestic MMF
industry and to prevent mass level loss of employment," the statement
said.
