The Federation of Indian Art Silk Weaving Industry (FIASWI) has opposed the move by Union government to allow import of man-made fabrics (MMF) at concessional duty to boost the exports of ready-made garments.

In a representation to joint secretary (exports), ministry of textiles, Government of India, FIASWI chairman Arun Jariwala has stated that the proposed move by the government will destabilize the powerloom sector in the country.

Recently, the Apparel Export Promotion Council (AEPC) in its pre-budget memorandum to the finance ministry had asked for reduction in customs duty to flat five per cent in synthetic, blended and speciality cotton fabrics to enhance 100 per cent garment export in three years from $13.69 million to $30 million.

The FIASWI has stated that the percentage of growth between 2007-2008 and 2011-2012 in fabric production in the last Five Year Plan was a meager 9.61 per cent as against the projected 56.98 per cent. Even the production of 100 per cent non-cotton fabrics from April to November 2012 is 12,741 lakh square metre as against 13,958 square metre during the same period in 2011, depicting a negative growth of 8.72 per cent.

Similarly, the production of synthetic fibre and yarn - basic raw material for the MMF sector in the country, especially in Surat - from April to November 2012 is 18.01 lakh square metre against 17.95 lakh square metres during the same period in 2011. This, according to FIASWI, indicates that every year, the percentage export of yarn is increasing and that the weaving and processing sectors are almost stagnating.

FIASWI chairman Arun Jariwala said, "We have opposed the proposal from garment exporters for concession in import duty of fabrics. There is a facility of advance licence to the exporters provided by the Government of India to import raw material for converting it into export products."

Jariwala added, "Concession in duty of import of man-made fabrics will lead to collapse of the powerloom weaving and textile processing sectors. Tens of thousands of workers in Surat and other man-made fabric hubs in the country will be rendered jobless."