Weavers want more duty on Chinese fabric

SURAT: The Federation of Indian Art Silk Weaving Industry (FIASWI) has expressed its concerns over the huge increase in import of man-made fabric (MMF) in 2013-14 from China, Taiwan and South Korea. It said this has reduced the demand of MMF fabric manufactured in Surat, Maharashtra and other parts of the country.
The situation in the power loom sector across India is very depressing due to low availability of man-made filament yarn and huge imports of the fabric.The fabric imported from China, Taiwan and Korea attracts around 10% customs duty against 12% excise duty on man-made fabric manufactured and sold in India.
The domestic man-made fabric sector is facing stiff competition from the cotton fabric. The man-made fabric fabric attracts 12% duty, while there is zero duty on cotton fabric. This, despite use of cotton fabric decreasing in the international market, sources said.
"A person using cotton fabric worth Rs 100 per metre does not pay any duty while a poor person wearing synthetic filament fabric costing less than Rs 20 per metre has to pay 12% duty," says FIASWI chairman Arun Jariwala.
Surat is the country's biggest manufacturer of man-made fabric with annual production pegged at 1,000 million metre. The powerloom sector has an installed capacity of around 6 lakh machines, employing over 5 lakh workers.
During 2013-14, import of fabric from China increased 79.49% in terms of quantity followed by 4.15% and 0.89% from Taiwan and Korea respectively. The total import of fabric from these countries accounted for 84.56%.
Jariwala added, "China is able to dump huge quantity of fabric due to subsidy of 29% given for exports of this item by the Chinese government."
The FIASWI wants import duty on fabric to be hiked from 10% to 30% to discourage Chinese manufacturers.