Textile body urge govt to remove hank yarn obligation

Indian Texpreneurs Federation, an apex body of the textile industry in the region has suggested the Centre to remove the hank yarn obligation.
In a letter to Prime Minister Narendra Modi, it gave suggestions as part of ease of doing business in textile industry and said there was excess production of hank yarn due to increase in spindlage, but consumption had come down drastically due to growth of the powerloom sector.
ITF secretary D Prabhu said mills have to produce 40 per cent of total production as hank yarn for supplying to the handloom sector.
The Textile Ministry has appointed an expert committee to study this, but the report has not been released and its continuation would lead to enormous corruption, he said.

Claiming that there was delay in disbursement of Technology Upgradation Fund subsidy worth crores, he said though Textile Commissionerate has released Expression of Interest from audit firms to clear the arrears, nothing has taken off and the matter has gone into cold storage again.
Due to high excise and import duty, Indian blended textile products are not competitive in world markets.

Rationalisation of duty structure would make the products competitive with international prices. This would help push demand, since man-made fibre cotton blended products are growing phenomenally both in India and abroad, he said.
There was urgent need for textile-focused Free Trade Agreements with existing and emerging markets, ITF said.

It also wanted the government to accommodate textile in the lower slab of taxation in the Goods and Service Tax (GST), which it said would transform the economy and provide phenomenal growth.
Nearly 300 mills have sent letters to the PM, seeking to present their suggestions, Prabhu said.