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Rediff.com  » Business » Remove excise duty on man made fibre

Remove excise duty on man made fibre

March 02, 2012 18:53 IST

Manmade Fibres contribute to 67% of global Fibre basket with Cotton at 31%. The shift is even more prevalent with the intensifying issues of cotton shortage and price volatility.

Thus, Viscose is considered the best alternative and is fast growing. China has focused on developing domestic market with Viscose so as to protect its population from abnormal price and shortage issues of cotton. However, in India, the scenario is reverse with almost 2/3rds of consumption into cotton.

Association of Man-Made Fibre Industry of India (AMFII) is for all Viscose Rayon Filament & Fibre manufacturers in India and world leader in Viscose Staple Fibre and second largest producer of Viscose Filament Yarn in the world.

In its Pre budget memorandum for Union budget 2012-13 the association has given following suggestions for Indian Viscose Rayon Industry:

Reduction in man made Fibre to NIL from current 10.3% and make it par with cotton as This would result in promoting a Fibre Neutral Fiscal Policy, a mission set in the National Fibre Policy by the Textile Ministry, Government of India and help in improving bringing Indian Fibre basket balance in line with global.

The Special Additional Duty (SAD) in lieu of Sales Tax should be retained for providing a level playing ground and maintaining competitiveness for the domestic textile industry in the home market

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