NITMA seeks 10% customs duty on man-made yarns in budget

The Northern India Textiles Mills’ Association (NITMA) recently urged the government to raise customs duty on man-made yarns to 10 per cent from the current 5 per cent in the next budget, as Indonesian and Vietnamese spinners have been offering such yarns at unreasonably low prices due to huge idle capacity created by government incentives.

Representations on this concern have been sent to the ministries of finance and textiles, NITMA president Sanjay Garg said in a press release.

The monthly average imports of virgin polyester spun yarn have increased by 972 per cent from 2015 to 2020—imports from Vietnam alone increased by 10,512 per cent, i.e., 107 times.

The average monthly imports for 2020 were 5,212 tonnes out of the total domestic monthly consumption of 22,000 tonnes, which implies that imports enjoy 25 per cent of the total market share. This trend is increasing at an alarming rate, NITMA pointed out.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Get News Updates