India textile industry to observe 1-day bandh against excise duty

LUDHIANA (Commodity Online): Indian textile industry has decided to observe a nationwide bandh (lock-out) on March 4 in response to 10% Excise Duty imposed on branded garments in the budget.

According to industry sources, the imposition of excise duty was shocking, especially in the wake of surging cotton yarn prices.

Cotton prices have been appreciating lately and the textile mills have been hiking yarn prices even as they admit that the current hike of Rs.15 for a kilogram—second hike in February—will not serve their purpose, according to a recent report in The Times of India.

Yarn costs account for 60% of the price for garment makers. And they have been finding it difficult to keep pace with the price surge given their vulnerable position and proximity to customers.

Also, makers of branded garments have stopped the dispatch of orders effective from March 1.