Textile industry asks govt to extend 3% interest subvention

Says govt must reduce various duties to help industry

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The textile industry has asked the Centre to extend the 3% interest subvention for all textile products so as to enhance exports.

C K Narayanasaami, Chairman, SIMA Cotton Development & Research Association and K Selvaraju, Secretary General, Southern India Mills' Association (SIMA) met the Commerce minister Nirmala Sitharaman during her visit to Coimbatore and handed over a 10 point memorandum with the industry's demands.

The industry said it wants MEIS scheme benefits to be extended to cotton.  

The association also flagged how textile products from India attract very high tariff rates in all the major markets like China, EU, USA, Canada, Australia. In comparison, those from Pakistan, Vietnam, Bangladesh, South Korea, Indonesia, Cambodia either attract very low tariff or have duty free access.

To offset this and boost exports, the association wants low tariffs or duty free access.  

It also asked the government to exempt domestic supply of capital goods under the EPCG scheme from terminal excise duty by introducing suitable bond procedure as against obtaining refund at a later date. It further wants the Commerce ministry to remove the condition that certain percentage of exports should be carried out within the "block period". 

The association also wants the Centre to ask Bangladesh to remove duty on Indian cotton yarn. Cotton yarn import is subject to customs duty of over 36% in Bangladesh. 

It further asked the government to remove import duties and reduce the central excise duty from 12.5% to 6% and also withdraw anti-dumping duties, remove the 6% central excise duty on shuttleless looms (projectile) and 12.5% on other shuttleless looms (air jet looms, rapier looms and water jet looms) and spares & accessories.

The textile industry which had been performing well till the end of 2013 started facing problems as competing nations like Pakistan, Vietnam, Cambodia, South Korea, Bangladesh started getting larger benefits and open window market access.