Mumbai, May 27 (KNN) The Clothing Manufacturers Association of India (CMAI) has urged the government to consider levying a temporary additional Covid import duty on import of garments for a period of 12 months.

In a submission to the Textile ministry and Ministry of commerce and Industry, the clothing body has suggested to levy a temporary additional Covid Duty on all imports of apparel and readymade garments, including on those garments imported from countries with whom India has a Free Trade Agreement, especially Bangladesh.

This move comes as the domestic garment manufacturing industry anticipates a slowdown of demand for a year severely impacting business.

''The additional duty will result in a level playing field for the domestic manufacturers, and help them compete with the Bangladesh Garment Industry, which has currently at least 15% cheaper production cost,'' said CMAI in a statement.

“Additionally, the levy will enable the government to collect approximately USD 100 – 150 million for its fight against Covid-19 (depending on the quantum of duty imposed),” the statement added.

In a recent study, CMAI estimated that will be more than 40% drop in domestic demand of apparel due to the lockdown and the reduced demand as a result of COVID 19. It is also estimated that more than 20% of the domestic units may face closure, being unable to survive the current crisis. The reduction in demand and revenue levels will lead to downsizing of operations, closure of units and job losses in Indian textile and apparel industry to the tune of 1 crore across the entire textile value chain.