SGCCI demand imposing of import duty on Chinese fabrics

Southern Gujarat Chamber of Commerce and Industry (SGCCI) and Pandesara Weavers’ Coooperative Society Limited has raised concerns that import of heavily under-invoiced fabrics from China has crossed Rs 5,500 crore in the last one year, but could be worth Rs 10,000 crore.

To protect the small and medium enterprises in Surat from these cheap Chinese fabrics and hence they have jointly submitted a representation to the ministry of commerce and the Confederation of Indian Industries (CII) demanding imposition of import duty on Chinese fabrics.

SGCCI president P M Shah said that the Government of China provides heavy subsidy to its textiles industry. They have provided a detailed list of the benefits enjoyed by the textile entrepreneurs in China. This further reduces the production cost per unit in China. Thus, it has become difficult for the powerloom weavers to survive here.

Pandesara Weavers’ Coooperative Society Limited president Ashish Gujarati said that the quality of fabrics imported from China are made of man-made and synthetic fibres as cotton is expensive in China compared to India. This fabric has caused a surge in demand to India’s SMEs in Surat.

Gujarati stated that India despite having production capacity has lost out on production leading to massive unemployment. Imports of fabrics are taking place at unit price of Rs 5 to Rs 15 per square metre. This price is unbelievably low for any kind of fabric as a simple handkerchief costs more than Rs 5 per piece in the market. Therefore, the cost of fabrics should be at least Rs 50 per metre. There should be immediate steps undertaken to stop clearance of undervalued fabrics.

Gujarati added that there are some tariff lines in a fabric which does not have specific duty and import of fabrics should be allowed only under automatic advancement scheme for actual users.

Immediate steps needs to be taken to stop imports of fabrics by increasing import duty and further imposing specific duty on all kinds of man-made fibre-based fabrics.

Recent Posts

Yanpai orders needlepunch lines from Andritz

Zhejiang Yanpai Filter Technology has placed a new order with Andritz for two additional high-performance needlepunch production lines.

2 days ago

Chinese textile group Sunrise to invest in Morocco

Sunrise has started building a textile factory in Morocco through its newly formed subsidiary, Euwen Textiles. Construction has begun in…

2 days ago

Tendam, UDIT study carbon impact of fashion e-commerce

Tendam, in partnership with the University of Design, Innovation and Technology, has released a new study examining the carbon footprint…

3 days ago

Mycelium-based insulation emerges as solution for fast-fashion waste

Researchers from Latvia have identified mycelium-based insulation as the most promising reuse option for fast-fashion textile waste.

3 days ago

Researchers turn PET waste into anti-cancer medicines

A breakthrough has revealed a new way to convert PET from plastic bottles and synthetic textiles into key components used…

3 days ago

India–New Zealand FTA to boost Indian textile exports

The proposed India–New Zealand Free Trade Agreement (FTA) is expected to significantly strengthen Indian exports.

4 days ago