Dyestuff sector requires 8-10% excise duty cut - Paswan

27/06/2008 12:00 - 825 Views

Addressing the 58th annual General Meeting (AGM) of The Dyestuffs Manufacturers' Association of India (DMAI), Union Minister for Chemical and Fertilizers and Steel, Ram Vilas Paswan stated that he will insist the Finance Ministry to reduce excise duty to 8-10 percent from the present 14 percent, so that the dyestuff industry may heave a sigh of relief.

According to the Union Minister, the imposition of anti-dumping duty is quite useless when there is no dumping; this is creating huge problems for the growth of this industry.

“Research and development is a big problem for us. We do not have constraints of money to invest in R&D but we have to overcome that to remain competitive,” Paswan said, during the meeting which held on June 21, in Mumbai.

Both India and China have a huge market potential for developing the chemical industry. The per capita dyestuff consumption in India is just 50 grams, which is one of the lowest in the world. However, plentiful scopes are available for the domestic market, for increasing consumption of dyestuffs.

"The 20 percent growth rate target for the dyestuff industry is good but our global share needs to be increased”, the Union Minister added.

The Indian dyestuff industry has a 10 percent share worth Rs150 billion in volume in global dyestuffs production. Exports are estimated to increase to Rs120 billion by the year 2010 from the present Rs100 billion.

June 23, 2008 (India)

Source: www.fibre2fashion.com