Surat, India – Contrary to the Union textile ministry’s endeavour to increase production of man-made fibre, yarns and fabrics in the country, the percentage growth during the 11th Five-Year Plan (2007-08 to 2011-12) has alarmingly gone down causing concern among textile entrepreneurs in country’s biggest man-made fabric hub.
As per the data of Federation of Indian Art Silk Weaving Industry (FIASWI), the percentage growth in the production of man-made filament yarn has decreased from 7 per cent in 2007-08 to -5.76 per cent in 2011-2012 and that of man-made fabrics from 11.23 per cent to -0.60 per cent during the same period.
The total production of filament yarn during 2008-09 was at 14 lakh tonne compared to 15 lakh tonne in 2009-10 increasing 7 per cent. In 2010-11, the production was 16 lakh tonne against 14 lakh tonne in 2011-12, falling by -5.76 per cent.
According to FIASWI, the dwindling production of man-made filament yarn, fibres and fabrics is due to increase in the excise duty by Central government. The excise duty was increased from 4 per cent in 2008-09 to 8 per cent in 2009-10 and it was further increased to 10 per cent in 2011-12.
Arun Jariwala, chairman, FIASWI, told TOI “Only the excise duty structure is solely responsible for the dwindling production of man-made filament yarn, fibres and fabrics in the country. On one count, the government is talking about increasing the production of synthetic fabrics and on the other hand, the industry has been burdened with 10 per cent excise duty. This sector requires special treatement as far as the fiscal levies are concerned.”
Jariwala said the export account of the Indian man-made fibre industry has shown a very good performance during the 11th Five-Year Plan. The export of man-made fabrics that was pegged at Rs 5,492 crore during 2007-08 have increased to 11,171 crore during 2011-12 registering a 103 per cent growth.
Likewise, the export of yarns and fibres were at Rs 5,636 crore during 2007-08 and it increased to Rs 11,057 crore during 2011-12 registering a growth of 96.17 per cent.
However, the increase in the export of yarn indicates that the spinners have got an added advantage to compete with China and other Far-East countries. In contrast, the fabric manufacturers in Surat and other parts of the country are totally cornered as they are unable to import yarn due to anti-dumping duties on almost all types of synthetic filament yarns.
“Significant increase in export of man-made filament yarn and fabrics indicates that the consumption in domestic market has reduced remarkably. In such circumstance the growth of the textile units in India could be affected negatively as Indian weaver does not have man-made filament yarn available at international prices,” added Jariwala.
Source: Times of India