Category: General
Country: India
In a formal communication to PK Mishra, the principal secretary to the Prime Minister of India, AIKA underscored the urgency of the issue, calling for immediate intervention to safeguard the domestic textile industry.
By TBT Web Desk
6th November 2023
Surat: The All India Knitters Association (AIKA) has sounded the alarm on the exponential surge in imports of synthetic knitted fabrics from China, emphasizing the detrimental impact of undervalued prices, which has led to an annual revenue loss of Rs 5,700 crore to the Government of India’s exchequer.
In a formal communication to PK Mishra, the principal secretary to the Prime Minister of India, AIKA underscored the urgency of the issue, calling for immediate intervention to safeguard the domestic textile industry.
The letter highlighted a staggering 111% increase in the import of synthetic knitted fabrics from China, escalating from 325 tons per day in 2019-20 to a substantial 686 tons per day in the current fiscal year 2023-24. Particularly concerning was the soaring import figures within the H.S code 60063200, which recorded a significant 148% surge, rising from 203 tons per day to 504 tons per day during the same period.
Of great concern to AIKA was the revelation that nearly 74% of the imported category under H.S code 60063200, described as ‘other knitted or crocheted fabrics of synthetic fibers—Dyed’, was brought in at an average price of $1.41 per kilogram. Comparatively, the average export price of polyester yarn stands at $1.51 per kilogram. This stark pricing contrast between the raw material export and the finished product containing spandex raises significant concerns within the domestic market.
AIKA emphasized the troubling trend of increasing import volumes coupled with declining prices, stating the impact as alarming for the domestic industry. Based on the import data for the fiscal year 2023-24, AIKA estimated that Rs 92 crore per month in evaded duty at the import stage, along with Rs 242 crore per month in evaded GST and Rs 141 crore in evaded income tax, spanning from the importer stage to the consumer stage.
Furthermore, AIKA proposed a critical measure, urging the government to implement import restrictions, such as Anti-Dumping Duty (ADD) or Quality Control Order (QCO), starting from finished products instead of targeting raw materials. This strategic move aligns with the Prime Minister’s ‘Make In India’ policy, aimed at fortifying local manufacturing and promoting indigenous products.
Courtesy: Theblunttimes.in
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