Sanjay Garg, President NITMA, deeply admires vision of The Hon’ble PM, Narendra Modi, Ministry of Finance & Ministry of Textiles for numerous steps taken to spur the domestic textile sector.
He then appealed for the urgent need of raising customs duty on man -made yarns to 10 percent, which is currently at 5 percent. Referring to the data included in NITMA’s last report wherein the concern regarding unreasonably low priced imports were raised (report with data available on NITMA’s official Twitter handle: NITMA (@NITMA4textile) / Twitter ). Based on the data, following are the primary issues
confronted by domestic MMF industry:
- Monthly average imports of Virgin Polyester Spun Yarn have increased by 972 percent from 2015 to 2020. Imports from Vietnam alone have increased by mammoth 10,512 percent, that is, 107 times.
- Average monthly imports for 2020 are 5,212 tons/month out of the total domestic monthly consumption of 22,000 tonnes/month, which means that imports enjoy 25 percent of the total market share. Moreover, this trend is increasing with great speed.
- Import numbers have been raising substantially year after year due to an extremely & unreasonably low price offered by Indonesian & Vietnamese spinners on account of huge idle capacities created owing to their government’s incentives.
Representations, on the above have also been sent to Ministries of Finance & Textiles, he added.
Garg further elaborated, that manmade yarn sector which is one of the largest employment generating segments within the textile industry and it’s highly capital and labour intensive industry as well. The unreasonably low-priced imports of manmade yarn into India have been causing considerable amount of injury to domestic manufacturers for last 5 years or so. Industry has deep concerns over the rise in import quantities being dumped into India, which can potentially cause an permanent damage to domestic MMF sector with the cascading effect, from closure of units to NPA’s, and eventually resulting huge employment loss.
As a recapitulation, he humbly appealed to the Ministry of Finance & Ministry of Textiles to consider increasing the customs duty on man-made yarn from its present level of 5 percent to 10 percent immediately in the ensuing Union Budget 2021 for the growth and expansion of domestic MMF Industry and to prevent mass level loss of employment.
