Duty cut sought for man-made fibre

The Apparel Export Promotion Council has sought 'focus product and focus market' status for the export of garments manufactured with man-made fibre in the trade policy.

According to Apparel Export Promotion Council Deputy Secretary General Anil Bamba, the high duty structure on man-made fibre discouraged the export of synthetic garments from India.

"In the global market the share of garments manufactured out of man-made fibre is 55per centwhere as India exports only 20per cent garments made from synthetic fibre and 80per cent of the export is of cotton garments", said Bamba. The reason for this is high duty on man-made fibre garments that is about 35per cent,he added.

If the man-made fibre is included in 'focus product focus market', the exporters will get a a relief in form of duty free import of raw material, equivalent to the 3 per cent of the total value of exports.

He added that India has huge potential in the man-made fibre garments inthe global market. "75 per centof our garment export is destined for EUand US. We have yet to explore the markets of Japan, Russia and Latin America. India has a miniuscule 1per cent share in the Japanese market that has total size of $ 22 billion", he added.

Bamba acknowledged the taxation for the domestic market but completly ruled out any taxation for the exporters. He said the taxation system in our country makes Indian man-made fibre garments incompetitive in the global market.

About 8000 manufacturers across India produce garments from man-made fibre. India exported garments worth $9.5 billion in 2006-07.