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Return【India】Hike in customs duty on raw silk opposed
Author：
Industry Website
PublishDate：
2012-03-15 16:27:21
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2441
The Banarasi Cloth Producers Union (Banarasi Vastra Udyog Sangh) has urged the Union Finance Minister, Mr Pranab Mukherjee, to refrain from increasing customs duty on raw silk imports.
In a memorandum to Mr Mukhejree, the Union Yarn Development Committee Convenor, Mr G.K. Kediya, opposed any hike in duty from the current 25 per cent on various grounds.
The memorandum follows demand from domestic reelers to hike the duty to 30 per cent.
“The whole scenario has changed since February 28 when the duty was cut,” Mr Kediya said.
Any hike in the duty will hurt weavers and will not lead to rise in raw silk prices, he said, adding that thus, sericulturists would in no way benefit from the increase.
Currently, domestic prices that usually rule Rs 200 lower than imported raw silk prices are lower by Rs 500-600. This is due to bumper crop and slackening demand resulting from switch-over to synthetic yarn by weavers.
If customs duty is raised, it will not have any effect on domestic raw silk prices. Efforts should be made to improve quality of domestic raw silk which would help bridge the demand gap of 10,000 tonnes, Mr Kediya added.
In a memorandum to Mr Mukhejree, the Union Yarn Development Committee Convenor, Mr G.K. Kediya, opposed any hike in duty from the current 25 per cent on various grounds.
The memorandum follows demand from domestic reelers to hike the duty to 30 per cent.
“The whole scenario has changed since February 28 when the duty was cut,” Mr Kediya said.
Any hike in the duty will hurt weavers and will not lead to rise in raw silk prices, he said, adding that thus, sericulturists would in no way benefit from the increase.
Currently, domestic prices that usually rule Rs 200 lower than imported raw silk prices are lower by Rs 500-600. This is due to bumper crop and slackening demand resulting from switch-over to synthetic yarn by weavers.
If customs duty is raised, it will not have any effect on domestic raw silk prices. Efforts should be made to improve quality of domestic raw silk which would help bridge the demand gap of 10,000 tonnes, Mr Kediya added.
