We are really very glad at the initiative taken by the Ministry Of Textiles to formulate the above policy with a decadal perspective of 2010-20. Such a long term policy will certainly benefit all the stakeholders in the textile chain and send a very positive statement to the world of our long term commitment(Read in Full...)

VFY is a Value Addition to Wood, which is produced by harvesting particular types of tree plantations planted in the remote and rural areas of India. VFY is a regenerated cellulosic and has a higher comfort factor than cotton due to its higher moisture absorbency and anti-static properties and thus it is ideal for tropical climates like India...(Read in Full...)

The Draft policy paper on the National Fibre Policy put out in the public domain for comments has done a commendable task in putting together the issues plaguing the complex textile and clothing sector with the presence of numerous players ranging from the small scale to the large scale integrated units. (Read in Full...)

CITI appreciates the initiative and efforts of the Ministry of Textiles to formulate a comprehensive policy for ensuring the growth and sustainability of fibres, which are the primary raw material for the textile value chain and play an important role in the growth of the textile and clothing sector as a whole (Read in Full...)

The Millowners Association, Mumbai (MOA) presents its compliments for the efforts taken by the Ministry of Textiles and its senior Officers, particularly the Secretary (Textiles), the Joint Secretary (Cotton), the Textile Commissioner etc. for the Policy, which unfolds the roadmap for the development of the Textile Industry in the country. (Read in Full...)

At the outset, we welcome the initiative taken by the Ministry of Textiles in preparing draft of a long term National Fibre Policy for the Country. Our observations / comments on various aspects of the draft National Fibre Policy are as follows:(Read in Full...)

While the objective of the National Fibre policy is to provide impetus to the Indian textile industry (including MMF textiles) to make it globally competitive, the same should be done considering the interest of the indigenous manufacturers. In this regard mention is made to Point XV(2) and Point XV(3) of the Executive Summary. In Point XV(2) it is proposed to exempt Excise Duty and Customs Duty on specialized MMF which are not produced Indigenously, which includes Nylon-66 (HS Code proposed ? 55031110, 54025110) as item no. 2(g). While Nylon-66 is not produced indigenously, it cannot be considered as a special fibre since Nylon-6, which is good substitute for Nylon 66, is available in abundance in the country. Special treatment of Nylon-66 can harm and destroy the domestic Nylon-6 industry where significant capacity exists. In point XV(3) it is proposed that 4% SAD be removed. With huge economies of scale the Far East and South East Asian suppliers are far more competitive and despite the prevailing SAD their landed prices are much lower than the costs of the indigenous manufacturers. It is therefore undesirable to give a preferential treatment to the overseas suppliers by withdrawing SAD. While the downstream industry may benefit from import of cheap raw material, the same shall be at the cost of the upstream manufacturing sector. The policy should provide level playing field to all the players and also take into account the economics of the entire value chain rather than a part of it which could result in anomalies.

We are happy to note that your Ministry has brought out a draft National Fibre Policy on 7th June, 2010. It is imperative to have a long-term vision and a structured approach to the fibre production so that the envisioned production of textile items across the textiles value chain can be attained.(Read in Full...)

National Fibre Policy is a necessity for India. Government has just released a Draft National Fibre Policy(DNFP) in June, 2010, based on the deliberations of eight sub-groups and a 72-member Working Group.(Read in Full...)

In continuation to the discussion held in the sub-group on June 14 and after viewing the Report on the ministry website it has been observed the matter of Duty Structure Rationalisation has not been included in the report.

Following is the argument for duty rationalization:

As discussed earlier, the country is dependent on imports for good quality raw silk to meet domestic as well as export requirements. This scenario is expected to continue going forward, as domestic raw silk production is estimated to grow at a marginal rate. Exports of silk products from Indian are expected to grow at healthy rates. The domestic industry will not be able to produce adequate quality and quantity of raw silk, and the gap between demand and domestic production will have to be met by imports.

In this respect there is need to rationalize import duty on raw silk which currently attracts a duty of 30% and on silk fabrics, which attract a duty of 10%. It may be noted that 2002-03 onwards the basic custom duty on raw silk has been kept at 30% level. In case of silk fabric the basic custom duty has been reduced gradually from the level of 30% (2002-03) to 10% (2009-10). It is suggested to reduce duty of raw silk yarn from 30% to 10% bringing it at par with the finished product.

I hope the above matter will be considered seriously and this most important issue of Duty Structure Rationalisation will find way into the final report of the sup-group.

It is with great interest that we have read the report of the sub group on the National Fibre Policy. We are happy that you have extended the deadline for seeking comments to 5th July 2010. We do believe that a full time line of less than one month from the point of time the policy document was opened up for public discussion, is far from adequate in view of the importance and scale of cotton production in India and in the world, as the sub group's document itself mentions. To quote the document, “Cotton has around 59% share in the raw material consumption basket of the Indian textile industry. Thus, it plays a major role in sustaining the livelihood of an estimated 5.8 mn cotton farmers and about 40-50 mn people engaged in related activities such as cotton processing and trade.”(Read in Full...)

A National Fibre Policy is necessary for India, given the growing competition in global textile, trade, concomitant changes in the Indian textile sector and growth objectives of Indian economy. However, Indian textile sector is known for its versatility, diversity and horizontal and vertical linkages. No other country has such complete supply chains across so many different fibers. With potential markets, at the domestic and international level, for each of the fiber products, it is indeed a tough context to decide upon the right mix of fibbers.(Read in Full...)

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“Increased usage of nonwoven disposable Meditech products in medical institutions and hospitals (see Executive Summary)”

The above point needs to be modified as follows because woven products are better in durability, eco-friendliness and many functional properties of medical textiles and are preferred by the Doctors as compared to nonwovens e.g. surgical gowns, crepe bandages, bandage cloth, etc.:

“Increased usage of woven and nonwoven medical products in medical institutions and hospitals.“

1. While recommending the ED structure one nees to look at 2 things

-- that any suggested structure should not create inversion leading to modvat accumulation in the entire chain starting from NAPTHA to Px, PTA as one arm and MEG as the second arm for Polyesters. Simiarly Naphtha to Benzene for Caprolactum and for Acrylonitrile. For this excercise you need to take into account the SION- Standard Input Output Norms- prescribed by FinMin. You may aso consult Dr. Chakravarthy of DCPC

--any suggested structure should consider the implications of GST- even if in the beginning there could be two GSTs- one the Central GST/CENVAT and the other the State GST/StateVAT.Eventualy any lower rate of either the ED or the Sales tax will have to converge to the final GST rate

2. Same thing for Tech Textiles.

The raw cotton export should follow a more scientific approach. The registration and subsequent export should be based on the stock of raw cotton available in the cotton during the peak cotton season i.e. from October to the middle of January. During this period if the stock to use ratio is more than 3.5 months on a month on month basis, raw cotton export registration and subsequent export should be allowed. From mid January to July end if the Stock to use ratio goes below 3.0, raw cotton export should be disallowed. What ever is the surplus quantity would be available for export thus a balanced demand ~ supply. We feel if this approach is adopted, the total exports of raw cotton would be regulated and adequate stocks would be available for value added domestic consumption.(Read in Full...)

“DNFP has noted the good practices being followed by USA, China, Brazil & Pakistan regarding help to farmers in cotton production and export promotion. Similarly, regarding yarn production and consumption, good policies of other countries need to be looked into e.g. Bangladesh has grown tremendously in export of garments and one of the reasons for this growth has been the facility of providing back-to-back L/C facility for purchase of yarn against export of garments. In India, the garment producers are highly dependent on financial credit from yarn dealers’ network. This can be avoided if back-to-back L/Cs is provided.(Read in Full...)

In order to encourage the promoters in the field of Technical Textiles, the following vital points have to be considered which are not only essential but also prime conditions for the setting up of viable project: 1. Technology Upgradation Fund Scheme: The following points may please be considered to make the necessary amendments in the existing TUF Scheme. a) Value cap on 2nd Hand imported weaving machines/ Looms meant for the production of Technical Textiles like Carpets etc.: The cost of permissible 2nd Hand imported weaving machines/ Looms meant for the production of Technical Textiles like Carpets etc. has not been prescribed under the prevailing TUF Scheme. In absence of which the promoters acquiring the permissible 2nd Hand imported weaving machines/ Looms are compelled to avail the benefit of TUF Scheme on much lower cost than that of the actual cost of import. The value cap so stipulated for importing permissible 2nd Hand Shuttle less Loom was made for the production of Wearable Fabrics whose cost is much lower than that of 2nd hand imported weaving machines/ Looms meant for the production of Technical Textiles like Carpets. At present, the cost of 2nd hand imported weaving machine/ Loom meant for the production of Carpets is about Rs. 100.00 Lac whose corresponding price for new looms is Rs. 300.00 Lac. Request: The value cap of Rs. 8.00 Lac, as stipulated on 2nd hand imported shuttle less looms, should not be imposed on 2nd Hand imported weaving machines/ Looms meant for the production of Technical Textiles like Carpets etc. and the benefits of both 5% Interest Reimbursement and 10% Additional Capital Subsidy be made available to the promoters on actual cost. b) Interest and Capital Subsidy on 2nd Hand Tufting Machines: In Coated Bath Mats segment, installation of Tufting Machine with Electronic Process Control is the basic requirement as Looms in a weaving unit. The cost of such New Tufting Machine is about 4 times higher than that of 2nd hand machine (whose vintage is below 10 years and residual life is more than 10 years). In terms of the provisions of prevailing TUF Scheme, only 5% Interest Reimbursement is available, that too on New Imported Tufting Machines only. Request: The 2nd Hand Tufting Machine with Electronic Process Control (whose vintage is below 10 years and residual life is more than 10 years) should also be allowed both, i.e. 5% Interest Reimbursement and 10% Additional Capital Subsidy. c) 5% Interest Reimbursement on investment in Land and Factory Building by made-ups manufacturers: As per the prevailing policy of TUF Scheme, the Made-ups Manufacturers are deprived-off the permissible benefit of 5% Interest Reimbursement, on the investment made by them towards acquiring of Land and Construction of Factory Building, which has been made exclusively reserved for the Ready Made Garments manufacturing units. Since, the process involved for the production of Garments and Made-ups are identical with regard to the basic raw material, Machineries and the production pattern, such facility towards 5% Interest Reimbursement invariably be made available to the Made-up Manufacturer also to bring them at par with Garment manufacturers. 2. Emphasis to promote Carpet and other Textile floor coverings in National Fiber Policy: Ministry of Textiles is kind enough to promote Garments & Made up sector and proposed to extend various benefits in National Fiber Policy such as, in Para 112 it is mentioned to give export oriented benefits like high Drawback rates and inclusion of garments & made ups made of man made fibers under focus Product Scheme). Similar benefits such as higher duty drawback should also be granted on Carpets and Textile floor coverings falling under Chapter 57, in the National Fiber Policy.

Federation of Indian Art Silk Weaving Industry (FIASWI) whole-heartedly welcomes the Draft National Fibre Policy and we are of the opinion that the Policy reflects the opinions of all the Sectors of Textile Industry in India.  We hope it will be finalized at an early stage and all the suggestions are implemented in due course for the benefit of the Indian economy, the Textile Industry in general and the Man-made Fibre Industry in particular.  Its heartening to note that an Advisory Council will be established with the inclusion of all the Stakeholders who can interact amongst themselves and the Textile Ministry to purposefully carry out the objectives laid down in the National Fibre Policy.However, we have a few suggestions pertaining to the power loom sector which deserves the kind and sympathic consideration and request you to include in them in the draft National Fibre Policy.(Read in Full...)

The National Fibre Policy is commendable owing to its efforts to provide a conducive environment for enabling the Indian Textile Industry to realize its full potential and achieve global excellence and acknowledging Fibres as the backbone for the progress of the industry. Also, the mammoth task of collaborative work in the diverse arenas of the Textile Industry across value chain to identify gaps and suggest policy interventions – both fiscal and non-fiscal is worth mention. The policy has also articulated and rightly so, that priority of focus would be on a) Indian farmers, b) Indian Textile Value Chain for domestic consumption and c) Growth in Export Markets(Read in full ...).

There was never an occasion when one did not feel the absence of National Fibre Policy and the proposed draft, now placed in public domain, has not come too early. Its absence was being felt more keenly in view of long term growth trajectory that our planners are now talking about. There has also been a growing concern on account of consumption of fibre in the ratio of 59:41 between cotton and man-made fibres, as against 40:60 ratio worldwide.(Read in full ...)

The Draft version of the proposed National Fiber Policy has been over all well drafted. Some of the recommendations made by the Working group and Sub-groups to formulate the Fiber Policy are well thought and far sighted while there are options for improvement as well. Few issues need to be re-examined from different angles or measure it with different scale. We believe, experts will scrutinize each recommendation in detail while inking the final fiber policy. (Read in full ...)

We are giving below our comments on the draft National Fibre Policy on Man Made Fibre Sector. You would see from the trailing mails that comments made by MMF industry have not been fully considered due to directions of Indian Spinners Association. The trailing mails are self explanatory. RIL and GRASIM have made certain suggestions which have not been included by the knowledge partners. I would appreciate if you please consider the suggestions of MMF industry. Comments under the Executive draft summary – Man Made Fibre, following corrections need to be incorporated:
Refer Future Projections point no IX, (p.113)    -   in order to add capacity of about 1.8 bn kg (FY15) and 4.6 bn kg (FY20), investment of over Rs. 90 bn (approx US$ 2bn) by FY 15 and Rs. 230 bn (approx US$ 5.1 bn) by FY20@) need to be met and this will come mainly from large players in the industry. In order to have this level of investment and to make it remunerative, Govt has to maintain the present level of Custom Duties till 2020.
Refer Issues & Concerns point no. X (p.114) - Current MMF duty may be corrected to 10% instead 8% mentioned therein. The difference between the optional CENVAT on cotton textiles and mandatory duty of 10% on MMF is more than 2 ½ times. This discrimination need to be corrected and Excise duty on cotton and MMF should be neutral.
Refer Issues & concerns point no. XII (p.114) -     The submissions made that fibre is available at import parity prices are incorrect and misleading. The fibre is made available to domestic spinning industry at a price lower than the import parity. The spinners under SRTEPC & FIASWI, have not given the correct numbers and have not divulged the individual discounts they get from the suppliers. Table below will display the same:
Domestic & Landed cost of PSF - The actual discount may go up further depending upon the volume lifted at the end of the year.  Domestic basic price and the landed prices are exclusive of Excise Duties /CVD)
We may add that at para no. XII, the spinners are do not make spun yarn available to textile mills at international prices and sell the yarn at 20% premium over the landed cost.
Domestic & Landed cost of 1/30s Polyester Spun Yarn The numbers and the future projections are taken from the Office of Textile Commissioner which may vary with the industry numbers as compiled by ASFI.  The numbers of exports, domestic production and capacities vary in different statements and need to be synchronized.
Under Recommendations, point XX – b & c,  (p.118) -   Customs duties on Titanium di-oxide (Anatase grade) should be 10% instead of 11% and on Spin Finish it is currently @ 7.5%, instead of 8% as mentioned in the report. As also, the HS code of Titanium di-oxide need to be rectified.
Under Indian Scenario, Issues & Concerns, Excise Duty Anomalies, (p. 141) -    Exhibit 2.3.1: Excise Duty for 2009-10 9%), please correct the present excise duty to 10.30 in all the items instead of 8.24%.

Scrutiny of the Draft Policy reveal that there is a  recommendation to remove 4% SAD whilst importing Man Made Fibers & Filament Yarns. Special additional duty (SAD) is levied at the rate of 4% to provide a level-playing field to indigenous goods which have to bear sales tax.   There for removing SAD without removing sales tax is incorrect and since sales tax is there to remain please do not remove 4% SAD whilst importing Man Made Fibers.   The Sub Group on Man Made Fiber did not make or agree to any such proposal.   It is therefore requested that 4 % SAD be retained whilst Importing Man Made Fibers

As desired Mr.K.K.Agarwal has shared his views to be incorporated in the policy.
Focusing on improving quality of the fibre produced in India: We think that lot of improvement is required in ginning quality so that lower trash cotton is available. The packing quality of cotton is very poor and lot of damage takes place in storage & transit.
Most of the ginners have started packing in plastic strips instead of Iron strips which causes lot of fire results. As when in case of fire plastic strips melt down & cotton get fire very soon. We think that use of plastic strips should be banned & cotton should be covered with Jute/ cotton fabric of heavy quality from all the six sides. We think that no cotton buyer will hesitate to pay some extra price for the same.
Further, there is a lot of shortage of trained manpower in spinning, weaving & processing. The trained manpower is required from floor level workers to supervisore to managers. Suitable training mechanism should be established through short term courses/ITI's engineering colleges etc. Without proper training all efforts for enhancing quality production etc will go waste.
Further, there is a new problem of adding water during packing of cotton bales which results in deterioration of quality & yellowness. There should be some law to stop this practice

I understand one of the most important natural fibres in India perhaps third in the importance is Coconut Fibre.  “Coir” (Yarn / rope) is one of the products of coconut fibre in use since inception that is from ancient times.  Coconut fibre the basic rawmaterial and its potential is yet to be explored.  ICAR institutes namely Cotton ResearchInstitute, Mumbai and National Institute of Jute and Allied Fibre Technology, Kolkatahad established the immense potential of coconut fibre for domestic and technical fabricsand many other industrial products.  ICAR has launched a Value chain project on coconut fibre for the production of innovative products of high value and also technology   refinement and innovation.
Present coir industry is agro basic decentralized rural based enterprise employee about 5 to 6 lakhs rural population on the coastal districts of Kerala  and other South Indian States and earning more than 800 lakhs foreign exchange by export of coir products to more than 100 countries in the world. 
Regarding R&D of coconut fibre for diversified value added products and technology innovation the industry is almost 80 years behind other natural fibres of the country that is Jute and Cotton.
Recent International Year of Natural Fibre 2009 declared by FAO coconut fibre / coir had an important position. 
Omission of coconut fibre possessing vast potential for development of high value products for export as well as for domestic in the days to come is a gross injustice to the national fibre resource based. 

North-eastern states of India are georophically isolated, industrially backward, skilled man-power is limited.
Region has no textile manufacturing activities, be it yarn or fabric or fabric conversion.
Like in case of silk, under CDP / Central Silk Board / Ministry of Textiles, GOI, North eastern states are considered as special category states and additional 15% additional grant or subsidy are applicable.
Similarly under TUF scheme the Policy may please consider N-E states as special category states and have extended subsidy by atleast 15%; which will certainly help in industrialization process.
This point was raised, during the visit of the Textile Commissioner in the year 2009, in Guwahati, Assam.

This is a good move to have a fiber policy. We also need to have a separate section for waste generated in each of these fibers. Here are some examples
Cotton Comber: goes into OE Spinning, paper mills, Rupee Notes. End use is Rugs, table mat for export, cold clothing for poor people in north, High quality paper and also Rupee Note printing. This if exported markets like Karur and Panipet get severly affected. so all waste exports should be banned from the country like Bangaladesh has banned it. This will enhance value addition. This does not affect farmers
Polyester Spinning Waste: Goes Primarily into Pillow filling, blanket filling etc. Again used used for products that serves poor people.  This should be banned too. This will also enhance value addition within the country
All kinds of waste if export is banned will enhance value within the country and make the country a green country.  Make our products greener.