Customers in Gujarat will not be getting any respite from the rising prices of textiles and apparel, mainly due to the unchanged 10 per cent basic customs duty (BCD).
According to industry players, the prices of apparel have increased by 15-20 per cent within the past year, all thanks to the high degree of volatility in the cotton prices in India, which went to an all-time high last year.
The industry has actively urged for abolishing import duty on cotton to help make prices more rational and to boost demand and exports.
“Cotton prices are still volatile, though it has fallen below average the past fortnight. A moderate 15-20 per cent increase in apparel price has impacted demand across value-based and high-priced brands. The industry will struggle to boost the demand with a higher cost of production amidst no respite in prices,” said Rahul Mehta, Chief Mentor of the Clothing Manufacturers’ Association of India (CMAI).
Weavers also expressed concern about rising production costs as a result of basic customs duty of 8.25 per cent levied on high-speed weaving machines (HSWM).”India is import-dependent when it comes to procuring HSWMs, and duty will only hamper the growth of weavers,” said Ashish Gujarati, Former President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI).
The industry players of the textile industry are happy, however, with schemes to enhance productivity of extra-long staple cotton through public-private partnerships.
“This will help improve the production of Indian cotton and enable the industry to make indigenous, high-quality textiles and command better realisations,” said T Rajkumar, Chairman of the Confederation of Indian Textile Industry (CITI).
