06 March 2009 13:04 [Source: ICIS news]
NEW DELHI (ICIS news)--India’s government should rethink the regulation, taxation and export incentives for synthetic fibres and their intermediates as part of efforts to develop a comprehensive fibres policy, an Indian textile industry group said on Friday.
The Confederation of Indian Textile Industry (CITI) urged the government to abolish the customs duty on all synthetic fibres and withdraw a newly introduced export incentive on cotton.
CITI was also urging different government entities to increase the domestic textiles industry’s share in the global market to 6% from 4%.
In addition, CITI voiced concern over increases in the domestic prices of cotton, which influence the demand and price of viscose and polyester.
“Unaffordable cotton prices are deepening the crisis in our textiles and clothing industry, and cotton consumption is likely to fall drastically because of this situation,” CITI said.
The government had announced a 40% increase in the minimum support price at which its nominated agencies would buy cotton from farmers in the current year.
Last month, it also introduced 5% incentive on export of raw cotton.
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