 "Govt to cut excise duty on man-made fibre soon")
The government is considering lowering excise duty on man-made fibre (MMF) in order to boost investment to meet growing demand from the synthetic textiles industry.
The Ministry of Textiles is set to announce a cut in excise duty on MMF in the new policy, which is scheduled to be announced in a month. While cotton fibre attracts no duty, the government has levied 10 per cent excise duty on MMF. The MMF industry has on several occasions represented to the government seeking exemption on MMF from excise duty, arguing that the garments produced through MMF are primarily used by the economically weaker sections of society.
"Yes, we are considering that (a cut in MMF excise duty), which will be announced in the new policy in a month," Kavita Gupta, textile commissioner, Ministry of Textiles, said on the sidelines of TAG 2016 — the 8th Annual Conference on Textile and Apparel Industry organised by industry body FICCI here on Friday. She was responding to a Business Standard query.
India's fibre demand is likely to more than double in 10 years on the government's increasing impetus on textiles sector for both domestic consumption and exports of readymade garments.
India's cotton fibre output currently stands at 6.5 billion kg, which may go up to 8 billion kg by 2025.
"There will be limited growth on cotton fibre output due to farmers' frequent changes in crop sowing pattern (for better realisation). But we have huge potential for growth in MMF," she said.
MMF requirement for Indian textiles industry would jump by at least five times to 12 billion kg by 2025, from 2.5 billion kg currently, given the kind of impetus we have given to the textiles sector.
Meanwhile, the government of Maharashtra is providing up to 35 per cent of working capital subsidy for new textile plants in the state.
