Man-made yarn prices up 2-4% on imposition of excise duty
Press Trust of India / Chandigarh Jul 15, 2009, 17:09 IST
Man-made yarn prices in Punjab have surged by 2 to 4 per cent in view of levy of central excise duty on man-made fibre and yarn announced in the Union Budget 2009-10.
"The textile industry has raised the prices of man-made fibre and yarn up to 4 per cent as the centre has imposed central excise duty of 8 per cent on these items in the budget," traders said.
The price of acrylic yarn has now moved upwards from Rs 164 per kg to Rs 168 per kg. Similarly, the rates of polyester cotton and polyester filament yarn have gone up to Rs 135 per kg and Rs 87 per kg respectively, they said.
In Punjab, the consumption of man-made, blended, spun and filament yarn stands at 650 tonne per day which is largely used in knitting, weaving and other textile applications.
Finance Minister Pranab Mukherjee has imposed 8 per cent excise duty on man-made fibre and yarn on a mandatory basis and on stages beyond fibre and yarn on an optional basis.
The textile industry was disappointed with the imposition of duty and said that it would push up yarn prices in the state which would further hit the industry.
"Man-made fibre is a major raw material for the textile industry for producing acrylic yarn, polyester, nylon yarn etc. Globally, man-made yarn constitutes 60 per cent of total textile consumption," industry analysts said.
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