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NEW DELHI: In a move to improve monitoring of import of cheap fabrics and garments, especially from China, the textile ministry wants to allow entry
of cotton textile products only through two ports. It is discussing the proposal with the commerce and the finance ministries.
Speaking to ET, union minister for textiles Dayanidhi Maran said that the domestic textile industry was getting affected by inflow of cheap products from countries like China and there was a need for stricter monitoring of imports.
"We are looking into the matter by trying to make sure that that imports of cotton textiles come to only two ports because if imports are allowed at all the entry points, it becomes extremely difficult for the customs department to police them. We are already in talks with the revenue and commerce department," Mr Maran said.
The Indian textile industry is one of the sectors hit hard by the on-going economic slowdown. Lack of orders from the US and the EU markets has resulted in a 10% decline in exports over the past few months. While the demand in the domestic market has been static, the industry wants the government to make all efforts to protect it from competition.
Officials in the textile department, who did not want to be named, explained that if imports take place through a limited number of ports, it is relatively easier to keep a check on prices and quantity. "It becomes easier for the government to ascertain if there is dumping taking place or if there has been an unusual increase in imports and whether there is a need to take action," the official said.
Anti-dumping duties can be imposed if a country is exporting a product at a price cheaper than what it is charging in its domestic market. Safeguard duties are easier to impose, as they can be put in place in case there is a sharp increase in imports of a product leading to a disruption in the domestic market.
While limiting the entry points for textile imports would help the government to monitor imports, it would also serve the dual purpose of discouraging imports. For instance if entry is allowed only through ports in the Southern India, it would automatically minimise imports from China as transportation costs from the country would increase manifold.
Speaking to ET, union minister for textiles Dayanidhi Maran said that the domestic textile industry was getting affected by inflow of cheap products from countries like China and there was a need for stricter monitoring of imports.
"We are looking into the matter by trying to make sure that that imports of cotton textiles come to only two ports because if imports are allowed at all the entry points, it becomes extremely difficult for the customs department to police them. We are already in talks with the revenue and commerce department," Mr Maran said.
The Indian textile industry is one of the sectors hit hard by the on-going economic slowdown. Lack of orders from the US and the EU markets has resulted in a 10% decline in exports over the past few months. While the demand in the domestic market has been static, the industry wants the government to make all efforts to protect it from competition.
Officials in the textile department, who did not want to be named, explained that if imports take place through a limited number of ports, it is relatively easier to keep a check on prices and quantity. "It becomes easier for the government to ascertain if there is dumping taking place or if there has been an unusual increase in imports and whether there is a need to take action," the official said.
Anti-dumping duties can be imposed if a country is exporting a product at a price cheaper than what it is charging in its domestic market. Safeguard duties are easier to impose, as they can be put in place in case there is a sharp increase in imports of a product leading to a disruption in the domestic market.
While limiting the entry points for textile imports would help the government to monitor imports, it would also serve the dual purpose of discouraging imports. For instance if entry is allowed only through ports in the Southern India, it would automatically minimise imports from China as transportation costs from the country would increase manifold.
