Textile Bill to protect consumer interests

The government is likely to introduce a Textile Development and Consumer Protection Bill in the coming Budget session of Parliament to protect consumer interest.

A new Act is being considered following proposals to remove cotton, cotton yarn, and cotton and woollen textiles from the Essential Commodities Act.

"The textile ministry will soon float a Cabinet note to remove these items from the Essential Commodities Act. However, since cotton and woollen textiles are commonly used, an Act will be introduced to protect consumers' interests," a senior government official told Business Standard.

The provisions in the Essential Commodities Act help the government to intervene in situations like a sudden price rise or a shortage in supply.

However, the Act was considered to be too draconian, which was why the government was considering a separate Act for textiles, an official said.

The provisions of the proposed Act will allow the government to take care of consumer protection in terms of ensuring a particular blend, making markings mandatory, including washing instructions.

Similarly, provisions to protect handlooms through mandatory packaging of yarn in the hank form could also be ensured through the new Act, officials said.Officials said the textile cess imposed on the sector way back in the 1970's was also likely to be withdrawn in the Budget since it had outlived its utility.

The textiles ministry has also asked the small-scale ministry (SSI) to de-reserve all remaining textile items from the SSI reserved list. There are 26 textile-related items reserved for the SSI sector.

The ministry has also recommended that excise duty on man-made fibre and yarn should be reduced to a uniform level of 8 per cent.

While cotton, silk and wool are exempt from excise, man-made staple fibre attracts a mandatory excise of 16 per cent. Polyester filament yarn (including textured yarn) attracts a duty of 24 per cent. All other man-made yarns have 16 per cent excise duty.

Officials said the Budget was also likely to contain some sops for technical textiles.

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A new Act

• The new Bill is being considered in wake of the proposed move to remove cotton, cotton yarn, cotton and woollen textiles from the Essential Commodities Act
• The provisions in the Essential Commodities Act helps the government to intervene in situations of a sudden price rise or shortage in supply
• The provisions of the proposed Act will allow the government to ensure consumer protection in terms of ensuring a particular blend, making marking mandatory, including washing instructions