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Textiles ministry to seek 10% increase in import duty on silk yarn
PTI - New Delhi

Textiles minister, Mr Kashiram Rana said he would soon approach the finance ministry for increasing import duty on silk yarn from 30 to 40 per cent to contain the fall in domestic prices on account of an increase in imports.

The proposal follows a request made by Andhra Pradesh chief minister, Mr N Chandrababu Naidu who called on the minister recently and sought increase in import duty on silk yarn in view of the sharp drop in silk prices which was affecting cocoon growers in the state.
Speaking to PTI after the meeting, Mr Rana said “We will soon take up the issue with the finance ministry for increasing the import duty back to 40 per cent which was brought down to 30 per cent in this year’s Union budget”.

Mr Rana said the decline in domestic silk prices to between Rs 80-90 per kg from Rs 150 earlier was on account of increase in silk imports as also a sharp cut in silk prices resorted to by China.

“Increasing the import duty will help to partially address the problem since if the prices are allowed to decline it could impact even premier silk varieties such as bivoltine,” he said.
Mr Rana pointed out that as per provisional data, imports of raw silk had increased from Rs 475.14 crore in 2000-01 to Rs 620.78 crore in 2001-02.

In fact, imports from China, a leading exporter to India had increased from Rs 438.17 crore in 2000-01 to Rs 580.18 crore in 2001-02, he said.

Similarly, imports of silk yarn and fabrics had also increased from Rs 91.02 crore in 2000-01 to Rs 171.16 crore in 2001-02. Imports from China increased to Rs 151.15 crore from 2001-02 to Rs 78.76 crore the previous year.

Meanwhile, textiles ministry officials said the Andhra chief minister also sought excise duty exemption to be given to units in apparel parks.

Mr Rana is understood to have conveyed that there was 100 per cent excise duty exemption to exporting units while units selling locally were permitted excise exemption of upto Rs one crore. He, however, assured Mr Naidu that he would approach the finance ministry to examine the possibility of increasing the excise duty exemption limit for local sales.