New Delhi: Traders in India’s textile hub Surat have laid out their own expectations and demands ahead of budget for the financial year 2013-14.
Traders want the government reduce import taxes for yarn in the upcoming union budget.
Facing stiff competition from cheaper textile producers in China and other parts of Asia, domestic weavers said the lower taxes would help them compete on the international market.
Analysts feel that the anti-dumping duty, which is meant to protect the local industry from unfair competition, is being misused by bigger industrialists to gain monopoly over the trade.
“Recently, anti-dumping duty has been imposed on different yarns and if the government removes anti-dumping duty from yarn and instead imposes the same duty on the final product like clothes, narrow fabric or technical textile then it would be beneficial for the traders in India,” Jitendra Vakharia, Member of South Gujarat Textile Processors'' Association told ANI.
‘They (traders) will be capable to compete with the readymade imported fabric,” he added.
Traders also believe that even a partial reduction of the anti-dumping duty will help improve the situation.
“If the duty is brought down from 12 to 8 percent, there will no revenue losses in future. The move will boost production and if that happens, the revenue will automatically go up,” a trader from Surat said.