Domestic units face closure as govt cuts import duty on blankets

Varinder Singh

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Tribune News Service

Bathinda, June 13

Prime Minister Narendra Modi’s ‘Make in India’ slogan seems to have evaporated into thin air for over four crore workers engaged in the country’s textile and mink blanket manufacturing units, as these industries are staring at a bleak future due to the Central government’s decision to cut the levy of import duty and GST from 29% to 16% on all imported blankets and fabrics.

The GST Council’s decision to decrease the customs duty and other taxes under the GST regime is set to result in shutting down of over 50 largescale mink blanket manufacturing units in the country, as these units won’t be able to compete with cheap imported mink blankets after the GST rollout.

These units produce nearly 1.5 lakh mink blankets every day, out of which 15% are exported to North America, Europe, Russia and Australia.

“How can we compete with mink blankets imported from China as these would be cheaper by at least 13% due to decreased duties on imported blankets from July 1. We will be left with only two options. Either, we will be forced to shut down our units or we will have to import blankets from China and stop domestic production. This will lead to unemployment of thousands of workers currently engaged in the mink blanket manufacturing industry,” said Abhishek Vij, Director of Jalandhar-based Shital Fibres Ltd., a mink blanket manufacturing unit that contributes around 70% in India’s mink blanket exports. The company produces nearly 45,000 blankets daily.

“Cutting down of import duty, cess and GST on imported blankets from 29% to 16% will be disastrous for domestic textile and blanket manufacturing units. We will raise the issue with Union Finance Minister Arun Jaitley soon and request him to review the decision,” said Ramesh Jagota, president, All India Mink Blanket Manufacturers’ Association. He said the textile industry employs nearly six crore workers. “Under the GST regime, not only mink blanket industry will suffer huge losses but the textile, yarn and fibre industries, too, will also incur losses,” he added.