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INDIA: FIASWI: Powerloom Industry In Dire State

Federation of Indian Art Silk Weaving Industry (FIASWI) is shocked and surprised by the recent hike of Excise Duty from 8% to 10% on Synthetic Filaments / Yarns / Fabrics.  At a time when the Powerloom Industry was slowly limping back to normalcy after the period of recession, the sudden jolt will bring the Powerloom Sector to a grinding halt affecting employment of lacs of people connecting to the Powerloom Industry. 

As per the “Explanatory Notes (Excise),” The standard rate of excise duty, which was reduced to 8% in February 2009, as a part of the stimulus package on non-petroleum products is now being enhanced from 8% to 10% with a few exceptions.  “Reduction in excise duty in case of synthetic filament yarn and POY”, was not at all included as a part of stimulus package offered by Government of India during February, 2009.  Thus withdrawal of stimulus, which was not given to the Synthetic Filament Yarn, defies logic. 

Infact FIASWI had requested the Government to bring about a uniform rate structure in excise duties for Cotton as well as Man-made Yarn.  This also has been recommended by the National Fibre Policy.  Whereas the Excise Duty on Cotton Yarn is left untouched at 4%, the Duty on Synthetic Filament Yarn is hiked from 8% to 10% and as a result the gap between Cotton and Man-made Filament Yarn has further increased to 6%. 

FIASWI has appealed to the Government to atleast roll back the duty increase to 10% to 8% on Man-made Filament Yarn, at the earliest.  Handloom and Powerloom Weavers in the Small & Medium Weaving Industry consume more than 90% of Man-made Filament Yarn and the Fabrics produced from it are used by consumers in the villages and towns. 

Source: FIASWI • News Courtesy: BharatTextile.com