Ludhiana Textile Manufacturers Allege Under-billing By Chinese Cloth Importers

Ludhiana, Jan 15 (KNN) The Ludhiana Textile industry expresses deep concern over the influx of under-billed Chinese cloth, asserting that the government's inaction, despite incurring significant financial losses, jeopardises the local textile sector's existence.

Tarun Jain Bawa, Chairman, Bahadurke Textile and Knitwear Association and Federation of Textile and Manufacturing Association of Ludhiana, voiced allegations against the government during discussions with The Tribune.

Bawa highlighted the import of filament polyester cloth, subject to a 25 per cent import duty, arriving in bulk from China. He pointed out a blatant tax evasion practice wherein polyester, taxed at 25 per cent, was being declared as cotton fabric with a 5 per cent duty, resulting in a direct tax evasion of 20 per cent.

Bawa questioned the plausibility of such actions without the involvement of customs officials and revealed multiple unsuccessful attempts to address the issue with the Government of India.

Another Ludhiana-based textile manufacturer added weight to the claims, citing instances of cloth under-billing.

According to this manufacturer, while polyester's actual cost was Rs 320 per kg, it was falsely declared as cotton fabric at Rs 80 per kg.

Expressing dismay, the manufacturer emphasised the impracticality of obtaining any yarn at the claimed rate and disclosed that approximately 500 containers, each carrying around 22,000 kg of fabric, enter India on average.

The manufacturer criticised the situation, describing certain unscrupulous entities in the industry who managed to acquire cloth at Rs 80 per kg.

“We cannot survive when loads of under-billed polyester is reaching India and authorities fail to take any action”, added Bawa.

(KNN Bureau)