The textile industry is not only facing challenges on the input side but also on the export front. (EXPRESS PHOTO)
The Textiles Ministry is pushing for another round of customs duty cuts on several input items related to man-made fibre (MMF) to cushion war impact, The Indian Express has learned.
“The Textiles Ministry is independently looking at customs duties on a lot of inputs, including cotton, rayon pulp, wood pulp and yarn. Duty on several input items has already been reduced. On cotton, discussions are ongoing with the Agriculture Ministry as well, given the sensitivity. We have to take a consolidated position on that,” a government official said.
The official said the ministry has also sought deferment in anti-dumping duty investigation on elastomeric fibre yarn and viscose rayon filament yarn to ease supply constraints.
“The ministry is also going to write to the Ministry of Petroleum and Natural Gas of India, requesting that the sector be treated as a priority sector in case of gas shortages,” the official said.
The Indian Express had reported that the biggest impact of the war has been on the prices and availability of poly-ethylene terephthalate (PET).
Confederation of Indian Textile Industry (CITI) Secretary General Chandrima Chatterjee had said, “PET is used in polyester fibre that goes into the production of roughly 40% of India’s apparel production, as 60% is still cotton-based. We have sought a duty exemption on cotton imports,” Chatterjee said. The textile industry is not only facing challenges on the input side but also on the export front.
The Apparel Export Promotion Council, in a letter to the Commerce and Industry Ministry, said about 11% of India’s apparel exports go to war-affected areas. Out of India’s total ready-made garment (RMG) annual export of $15.97 billion, $1.8 billion goes to war-affected countries such as the UAE, Saudi Arabia, and Israel.
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According to apparel exporters, the $12,000 emergency conflict surcharge for container shipments has increased the price of items such as two-piece suits by Rs 43, raincoats by Rs 37, shirts by Rs 12, and trousers by Rs 18. Due to the war, apparel consumption may decline, and brand confidence could take a hit and reporter orders will also get impacted, AEPC said in its letter last month.
