Synthetic yarn makers seek import duty abolition

The synthetic yarn makers are raising the issue of scrapping duty on their raw material after the government yielded to a similar demand from cotton yarn spinners following a day's strike early this month. The yarn makers have asked for reduction in excise duty from eight per cent to four.     

"The industry is in crisis as the raw material cost has gone up by 32 per cent in the past four months. If our demands are not met, 95 per cent of the mills will suffer losses," President of Indian Spinners Association V K Ladia said.     

There is a five per cent customs duty on fibre and eight per cent excise duty besides four per cent special additional duty.      

He said the synthetic fibre, a petroleum downstream product, should be given the treatment given to the crude oil for import duty. The association has given representations to ministries of Finance and Textitle.     

"Synthetic fibre is just about one per cent of total import, and abolition of customs duty will not have any impact on government revenue," he said.      

Five leading yarn mills