The Ministry of Textiles is advocating for further reductions in customs duties on various input materials associated with man-made fibers (MMF), aiming to mitigate the effects of ongoing conflict, as reported by The Indian Express.
A government official indicated, “The Ministry of Textiles is reviewing customs duties on multiple inputs, such as cotton, rayon pulp, wood pulp, and yarn. Several duties have already been lowered. Discussions with the Agriculture Ministry are also taking place regarding cotton, considering its sensitivity. We need to establish a unified stance on this matter.”
In addition, the ministry is requesting a postponement of the anti-dumping duty investigation concerning elastomeric fiber yarn and viscose rayon filament yarn to alleviate supply issues.
The official further noted that the Ministry of Textiles intends to reach out to the Ministry of Petroleum and Natural Gas, urging that the textile sector be prioritized during gas shortages.
The Indian Express previously highlighted that the conflict has significantly affected the pricing and availability of polyethylene terephthalate (PET).
Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), stated, “PET is a key component in polyester fiber, which contributes to approximately 40% of India’s apparel production; the remaining 60% is still reliant on cotton. We are pursuing a duty exemption for cotton imports.” The textile sector is grappling with challenges not only on the input side but also in terms of exports.
The Apparel Export Promotion Council (AEPC) communicated in a letter to the Ministry of Commerce and Industry that around 11% of India’s apparel exports are directed to regions affected by conflict. From a total annual export of $15.97 billion for ready-made garments (RMG), $1.8 billion is sent to war-impacted countries, including the UAE, Saudi Arabia, and Israel.
Exporters in the apparel industry have reported that the $12,000 emergency conflict surcharge on container shipments has inflated the costs 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, there is a potential decline in apparel consumption, diminished brand confidence, and potential impacts on order placements, as noted by the AEPC in its correspondence last month.
Ravi Dutta Mishra serves as a Principal Correspondent at The Indian Express, focusing on economic policy and financial regulations. With over five years of experience in business journalism, he delivers insightful coverage on the frameworks that shape India’s economic environment.
His reporting primarily addresses:
- Trade & Commerce: Examining India’s import-export patterns, trade agreements, and business policies.
- Banking & Finance: Reporting on regulatory changes and policy developments affecting the banking sector.
Before joining The Indian Express, Mishra cultivated a strong portfolio with leading financial news outlets in India, including Mint and CNBC-TV18. This varied experience across both print and broadcast media has provided him with a comprehensive understanding of financial narratives and news cycles.
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