Study group on textiles calls for labour reforms

The special study group on textiles formed in June under the Board of Trade has called for labour reforms, ensuring availability of inputs at competitive rates, human resource development and greater foreign direct investment in its recommendations to the commerce ministry.

The convenor of the group and Apparel Export Promotion Council Chairman A Sakthivel today addressed a press briefing where he shed light on the recommendations that have been forwarded to the government.

The board has recommended that the duty structure needed to be neutralised to ensure that Man Made Fibre segment does not suffer.

Further it has also asked for an extension of the Technology Upgradation Fund Scheme (TUFS) beyond its 2007 deadline till 30th March 2010.

"Labour reforms continue to be of critical importance for the sector. Reforms like allowing contract labour and increasing working hours to 60 per week are essential if the sector has to achieve the target of $ 50 billion exports by 2010," said Sakthivel.

On the various duties that have engulfed the sector, the Board has recommended reduction of import duty on domestic textile mills to zero and excise duty on domestic textile machinery to 8 per cent. Further it has also called for abolishing the textile committee cess on export of goods at the earliest.

The board has also warned against signing Free Trade Agreements (FTA) with competitors and has stressed the need to enhance foreign direct investment into the sector.