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  TEXTILE INDUSTRIES  
 
 
     
     
 
  Textile Industries
 
     
  Financial Institution
     
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  Annex-H
     
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  Annex-F3
     
  Annex-F4
     
  Annex-G
     
  Annex-B-1
     
  Annex-C
     
  Annex-D2
     
  Annex-E
     
  Annex-E1
     
  Annex-F2
     
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  Benefit-A
     
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  Notification10
   
  Speech of the Chairman, Shri Arunchandra N. Jariwala at the 30th Annual General Meeting of Federation of Indian Art Silk Weaving Industry in the Board Room of SASMA Ltd, on Tuesday, the 29th January, 2008, at Mumbai.
   
   
  Friends,
   
  I, extend to you all a warm welcome to the 30th Annual General Meeting of FIASWI.  As you are all aware the Powerloom Sector is the real supplier of cloth to the nation.  But despite the eminent position of the Powerloom Industry in India it is placed in a very serious situation at present.  This Sector is fighting a bitter battle of survival and the stake of lacs of Powerloom owners and millions of workers are placed in a precarious position.  On one hand cost of yarn has been steadily rising as the local spinners have diverted their production for exports and at the same time import of yarn has become difficult due to levy of Anti-Dumping Duty.  On the other hand huge quantities of cheap fabrics are being flooded in our local market.   The sale of these fabrics has damaged the local Powerloom Sector.
   
  FIASWI is trying its best to rescue the Powerloom Sector and is taking its cause at various forums.  We have presented the grim position of the Powerloom Sector at the Tex-Summit 2007 organized by the Government in New Delhi during end of August, 2007.
   
  I am glad that the Government of India has been understanding the serious situation and are trying to be proactive and extending some help to the Textile Industry.  During November, 2007 Government has reduced the Import Duty on Polyester Filament Yarn and Viscose Filament Yarn from 7.5% to 5% and has also reduced the Import Duty on the raw materials required for manufacture of yarn.  However, as the Powerloom Sector needs more help from the Government, we have resubmitted our Pre-Budget suggestions and submitted the same to the Hon’ble Minister of Textiles, Shri Shankersinh Vaghela, during a Meeting with him on 9th January, 2008. 
   
  EXCISE DUTY:
   
  We have asked for reduction of Excise Duty on all our yarns including Polyester Filament Yarn and Viscose Filament Yarn from 8% to 4%.  This is because while Customs Duty on the above has been reduced to 5%, the Excise Duty remains unchanged at 8%, the situation amounts to inverted tax structure.  We have therefore asked the Excise Duty to be reduced to 4% which would bring it in line with the Duty on Cotton Yarn which attracts 4% Excise Duty if Cenvat Credit is availed and 0% if Cenvat Credit is not availed.  While Polyester Filament Yarn and Viscose Filament Yarn attracts 8% even if Cenvat Credit is not availed.  Similarly, we have asked the Government to reduce the Excise Duty on fabrics to 4% to be in line with the Duty on Cotton Fabrics.  This anomaly has to be rectified soon as the percentage of production of Man-made Filament Fabrics is continuously decreasing from the year 2004-05 when the Excise Duty difference between Cotton Yarn and Man-made Filament Yarn was introduced.  The production of Fabrics during this period can be observed from the following table.
   
  PRODUCTION OF FABRICS
   
 
Item 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
               
Cotton Fabrics 39% 47% 46% 43% 45% 49% 50%
Man-Made Fabrics 61% 53% 54% 57% 55% 51% 50%
   
  CUSTOM DUTY:
   
  Regarding Customs, we have asked the Government to reduce the Custom Duty on Polyester Filament Yarn, Viscose Filament Yarn and other Filament Yarn to 4%.  We have asked the Government to investigate in the matter of conversion cost from Chips to Yarn as the conversion cost in China from Chips to Yarn is less than Rs.3.56 per kg whereas in India it is more than Rs.15/- per kg.  If Fabric producers cannot produce raw material at International price, the cost of production of all products in India against China becomes uncompetitive.  The comparative chart of our Raw Material and Partially Oriented Yarn (POY) available in China and India is given below:
   
 
Products Chinese Price Indian Price
     
Products
Equivalent US $. / Kg. EquivalentRs. / Kg.
Equivalent US $. / Kg. Equivalent Rs. / Kg.
PTA.
1.06

44.08

1.03

42.55

MEG
1.24

51.01

1.13

46.68

PP Chips
1.48 61.55
1.39

55.97

POY 150 Dn.
1.57 64.92
1.78 63.75
   
 
Source: Market Intelligence Report of Textile Excellence Statistics.
   
  We have asked the Government that the Anti-Dumping Duty on our Raw Materials should be seriously reviewed to make available our Raw Materials at International prices.
   
  TECHNICAL TEXTILES:
   
  I would like to say that manufacture of Technical Textiles would give us great opportunity to come out of the present crisis in the Powerloom Sector.  Market of Technical Textiles in India is growing at a compounded annual growth rate of 11.25% and is estimated to reach US $ 12 billion in 2010 from the level of US $ 4 billion in 2005.  We have asked the Government to support the nascent Technical Textiles in India, Import of Technical Textiles should be discouraged and an Import Duty of at least 16% should be levied on such Imports.  The local manufacturers should be supported by the Government by levying NIL rate of Excise Duty and no VAT on their products.  This would be appropriate in view of the new National Technology Mission on Technical Textiles recently announced by the Government of India.  We have also asked the Government to reduce the Import Duty to 0% on Machineries required for manufacture of Textile products.  Even otherwise we have asked the reduction of Import Duty on other Textile Machinery and their Spare Parts to 5%.
   
  While we at FIASWI will try our best to get the import and excise duty reduced on our raw materials and machineries, the Powerloom Units at the same time should try to produce some new products as an alternate.  In this context I would like to say that manufacture of Technical Textiles would give us great opportunity to come out of the present crisis in the Powerloom Sector.  The Government of India and the Textile Industry have identified the Technical Textile Sector as the sunrise sector.  Market of Technical Textiles in India is growing at a compounded annual growth rate of 11.25% and is estimated to reach US $ 12 billion in 2010 from the level of US $ 4 billion in 2005.  Such a high demand for Technical Textile products makes it a high potential area.  Some of the focus growth sectors in India are Mobiltech, Meditech, Geotech, Agrotech, Sporttech, etc.  I am aware that although this sector offers great scope for our Powerloom sector a huge ground work needs to be done like duty free machinery, import of duty free raw material, holding exhibitions, promotion of products both in the home and in the international market.  With this matter in view the office of the Textile Commission has made a beginning and has recently constituted an Ad-hoc Committee which can be converted subsequently into a Development Council for Growth and Promotion of Technical Textiles.  I am grateful to the Textile Ministry and Textile Commissioner that they have appointed me the Chief Convenor of this Ad-hoc Committee.  There will be 22 more members in this Ad-hoc Committee who are Industry Owners and Senior Executives from different faculties including Research Association.  In fact, I have convened the first meeting of this Ad-hoc Committee today afternoon at the Textile Commissioner’s Office.
   
  STATE VAT SALES TAX ON FABRICS:
   
  We have cautioned the Government against the likely imposition of VAT Sales Tax on Fabrics.  It has to be noted that such a levy would be a very complicated affair as manufacture of Fabrics in the Decentralised Sector does not take place in one State.  Yarn is manufactured in one State, grey cloth is woven in another State, processing of fabrics is done in the third State, cloth is sold in fourth State and has to go to fifth or sixth State, if it could not be sold earlier.  The Central Sales Tax is slated to become zero over a period of time. However, till this happens, fabrics involved in interstate movement will have to pay Central Sales Tax in the originating State and VAT Sales Tax in the State, where it is sold/consumed.  Since the Government was aware of all the complications of Sales Tax on fabrics, the system of additional excise duty in lieu of Sales Tax was introduced in 1957. The system must continue in the interest of the industry.
   
  VAT on Textiles should be deferred until Central Sales Tax is brought down to Zero and States get the share of AED from the Central Government.
   
  Let us all hope and pray that we shall face the present difficult situation with great fortitude and come out strongly in the years ahead.
   
  ACKNOWLEDGEMENTS:
   
  It is my bounden duty to express my grateful thanks to Mr. Shankarsinh Vaghela, Hon’ble Minister for Textiles and Mr. P. Chidambaram, Hon’ble Minister for Finance, Mr. Kamal Nath, Hon’ble Minister of Commerce & Industry, and Mr. E. V. K. S. Elangovan, Hon’ble Minister of State for Textiles for all the positive policy decisions and the response the Industry has received from them and their Ministries, whenever we approached or represented to them.
   
  I am thankful to Mr. Arvind Kumar Singh, Secretary (Textiles) who is very keen in developing and progressing the Textile Industry.  I also thank Mr. Sudripto Roy, Mr. Qaiser Shamim, Mr. Bhupendra Singh, Mr. Jamini Kumar Sharma, Joint Secretaries (Textiles), Mr. N. D. George, Economic Adviser, and Mr. Bishwanath Sinha, Director, Ministry of Textiles, for the assistance and help the industry has received from them.
   
  I also thank Mr. Ashok Jha, Secretary (Finance), Mr. K. M. Chandrasekhar, Secretary (Revenue), Mr. S. K. Singhal, Chairman, Central Board of Excise & Customs, Mr. P. C. Jha, and Mr. Devendra Dutt, Members, Central Board of Excise & Customs.
   
  I also thank Mr. J. N. Singh, Textile Commissioner, Dr. Harsharan Das, Additional Textile Commissioner, Mr. N. M. Mugadur, Mr. B. A. Patel and Smt. Shashi Singh, Joint Textile Commissioners and all other Officers and Staff of the Office of the Textile Commissioner. I also thank Mr. G. K. Pillai, Secretary (Commerce) and Mr. R. S. Gujral, Director General of Foreign Trade, Ministry of Commerce & Industry for their Co-operation and support to the Industry.
   
  I extend my thanks to Mrs. Krishna Gahlawat, Chairperson, Textiles Committee, for the support the Industry has received from her.
   
  I also thank Dr. V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council, for the support the Industry has received from him.
   
  I also convey my sincere thanks to Mr. C. P. Dhamodharan, President, Mr. K. P. A. Palanisamy, Mr. Vijayakumar, Vice-Chairmen and all other Members of Managing Committee of FIASWI for their co-operation and support.  I am also thankful to Mr. Maganbhai Doshi, Vice-Chairman, who has been a great inspiration and guidance to the Industry.
   
  I also thank Mr. Chaturbhai Singapuri, President, Surat Vankar Sahakari Sangh Ltd., Mr. Dhirubhai Desai, President, SASME Co-operative Ltd., Mr. Niranjanbhai M. Patel, President, Udhna Group Weavers Producers Co-op. Society Ltd., Mr. Kaval Mehra, Chairman, Synthetic & Art Silk Mills’ Association Ltd., Mr. D. K. Karve, President, Bhiwandi Textile Manufacturers’ Association, Mr. M. A. Pingle, President, Silk and Art Silk Manufacturers’ Association, Bhiwandi and other Member Bodies of FIASWI. I also thank all the delegates, guests and others who are present here today
   
  I also take this opportunity to thank the Press in general and Tecoya Trend in particular for their support and co-operation.
   
  I also thank Mr. N. T. Rao, Secretary General, who has been devotedly and efficiently serving the Industry.
   
  I also thank Mr. C. C. Contractor, Hon. Secretary and Mr. K. N. Mody of SASCMA, Surat, Mr. H. B. Saraiya, Manager, the Surat Vankar Sahakari Sangh Ltd. and Mr. A. C. Champaneria, Manager, SASME Co-operative Society Ltd., Mr. P. J. Purohit, Manager, Udhna Weavers Producers Co-operative Society Ltd., and all other staff members of SASMA, FIASWI & SASCMA and all Member Associations for their support & Co-operation.
   
  THANK YOU
     
 
     
 
     
   
 
     
 
History --------------------01 Photo Gallery -------------------03 Activities -------------------05
     
Catalogue ----------------02 Textile Industries --------------04 Surat -----------------------06
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