Manufacturers Demand Specific Import Duty On Knitted Fabric To Arrest Cheap Imports

Chandigarh, Jan 24 (KNN) Representatives of various associations and trade bodies have expressed concern regarding the influx of substandard imports of approximately 1,000 metric tonnes per day from China consisting of knitted fabric mixed with woven fabric.

This surge is causing the under-utilisation of the upstream textile industry, as stated by the Northern India Textile Mills Association (NITMA) on Monday.

The significant factor contributing to this disparity is the customs duties imposed on woven fabric compared to knitted fabric.

Currently, the customs duty on woven fabric is set at 20 per cent or Rs 115 to Rs 150 per kg, whichever is higher. Whereas, the customs duty on knitted fabric is fixed at a rate of 20 percent with no capping.

RK Vij, representing Textile Association of India (TAI) and NITMA at a meeting chaired by Union Minister of Commerce and Industry Piyush Goyal in Delhi last week, recommended a minimum price of USD 4.5 to 5 per kg for the imported knitted fabric to ensure fair trade practices.

The consequences of this trend are detrimental to the domestic industry, leading to the struggling status of dying, knitting, spinning, and fibre units, which are on the verge of closure.

The implementation of new expansions under the Production Linked Incentive (PLI) and PM Mitra Park schemes has also been temporarily halted by domestic entrepreneurs.

NITMA estimates a substantial loss of revenue, both in direct and indirect taxes, ranging from Rs 6,000-7,000 crore annually.

A notable observation is that the finished knitted fabric is being imported at prices equivalent to those of Indian spun yarn.

(KNN Bureau)