In order to enable the textile industry to have a level playing field in the global market, the first and foremost policy measure urgently required was the market access, as the industry was equipped with excess production capacity, Southern India Mills’ Association (SIMA) claimed today.

The Indian textile exports declined in August 2015, for the ninth straight month by 20.66 per cent with overall exports reaching US $ 26.8 billion, while exports of cotton textiles registered a negative growth of 7.39 per cent as exports touched 863.18 million USD in August as against 932.02 million USD in August 2014, M. Senthil Kumar, the newly elected chairman of SIMA, told reporters here.

The continuing decline in exports was a serious concern and the Centre needed to take urgent action as the preferential access was being given to competing nations like Bangladesh, Cambodia, Pakistan, South Korea, Turkey and Vietnam by the major importing countries like EU, Canada, China, and the abnormal duties imposed on the Indian
textiles were severely affecting Indian exports, Senthil Kumar said.

Therefore, the Government should expedite conclusion of Free Trade Agreements (FTA) with China, EU, Australia, Canada and other countries and gain market access, he said.

He urged the Government to extend three per cent incentive for yarn; five per cent for fabrics and seven per cent for garments and made-ups till FTAs were signed as interim package, as the interest rate in India was between 12 and 14 per cent, he said and sought extension of 3 per cent interest subvention for all textile products to have a level playing field.

He urged the Government to allocate Rs.6,500 crore as already recommended by the Ministry of Textiles, to clear all the pending Technological Upgradation Fund subsidies including black out period, committed liabilities and keep the scheme live till March 31, 2017 and to bring the scheme in a new format in the next five year plan.

Seeking the removal of import duties, anti-dumping duties and reduce the Central Excise duty on man-made fibre from 12.5 per cent to six per cent, the Association wanted to expedite the implementation of GST by covering textiles and clothing products under the lowest slab considering the nature of the industry (predominantly SMEs).

Another major policy decision required for smooth going of the industry was to extend subsidies directly to the cotton farmers and de-link Cotton Corporation of India from the Cotton trade, Senthil Kumar said.

Earlier, M. Senthil Kumar was elected as Chairman of SIMA for the year 2015-16. P. Nataraj and K. Vinayakram were elected as deputy chairmen of the Association, for a one-year term at its 56th Annual General Meeting held here this evening. SIMA is the apex body of textile mills of Southern Region.