India May Bring Tax Parity to Cotton and Synthetics
September 30, 2009 The Economic Times
NEW DELHI: The textile ministry is working on a policy to bring parity between cotton and synthetic fibres, textile minister Dayanidhi Maran said.
India’s existing policies are biased in favour of cotton. India’s consumption of natural and man-made fibres is in the ratio of 60:40 as against the global trend of 35:65. The proposed move will suggest ways to end this disparity, he said. The policy will be ready by the end of this year. “The national fibre policy will look into ways towards increasing exports and to boost local demand,” he added.
The policy is being formulated by a 41-member expert group consisting of textile exporters and policy experts headed by textiles secretary Rita Menon. “There is a need to have a policy on taxation and pricing of all these fibres to ensure that there is a level-playing field,” Indian Spinners’ Association president VK Ladia said.
There is no comprehensive policy governing fibres in India. Cotton, for instance, as an agricultural product is being handled by the agriculture ministry, jute by the commissioner of jute while man-made fibres is being taken care of by the ministry of heavy chemicals, he said.
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