He said that grey fabric prices are at the lowest, resulting in very little margin to the weavers, whereas production cost has increased drastically due to higher electric tariff and labour charges. Large quantities of fabric, especially synthetic are being dumped into the country as there is no level playing field for the decentralised weaving industry against cheap imports.

Mr Jariwala said that large quantities of cheap fabrics are being imported into the country, without providing possible and adequate protection to the indigenous industry. He said that large quantities of Chinese textiles and other goods are coming to India, since China is at an advantageous position with their mass production base, low electricity charges, high labour productivity and highly subsidized exports-all thse are at a disadvantage to Indian producers.

Mr Jariwala said that Government should protect the domestic industry by taking measures, such as additional duty to be levied on import of fabrics to take care of sales tax, octroi and also to compensate other cost disadvantages.

He said in other areas, large quantities of grey fabrics are imported into the country, at the cost of decentralized grey powerloom manufacturers since there is no excise duty on grey fabrics and only customs duty is appliable.He said that FIASWI had submitted a list of yarns and fibres to the Government and had suggested that the customs duty on all these yarns should be abolished, as they are not not manufactured in the country so that they can be imported and new fabrics can be developed within the country, saving foreign exchange and also providing employment.

In order to encourage production of more synthetic fibres which is cheaper and durable, it is necessary that excise duty on all fibres and yarns should be uniform. He said that large number of export oriented units (EOU), while on the one hand they are not exporting to their maximum capapcity and the duty free materials imported by them are directly sold in the market. (UNI) He suggested that this should be done away with the full duty paid, as that of non-EOU units if they want to sell in the local market.

Mr Jariwala said that chamber-wise duty system introduced since December 1998, which is working smoothly can not continue for a long time, when VAT is being introduced for all the items. Therefore he suggested that the present system of compound levy for independent processors under section 3a, should continue until such time that VAT is introduced at Central as well as state level.

Another important factor is that now about sixty per cent fabric is sold in the form of readymade garments, and hence it is necessary to shift the levy of excise and VAT at the garment stage, also shifting one stage ahead of processed fabrics.

He said that excise exemption is given to SSI units up to turnover of Rs one crore, however this has not not been extended to small scale industries in the man-made sector. Thus demanding excise duty concession for man-made textile sector also. He further demanded that textile policy announced in November this year, should be implemented in its letter and spirit without further delay.

Mumbai based textile commissioner BC Khatua, former textile secretary S Satyam, Maharashtra region vice-chairman Vishwanath Chalke, VP Dhonduswami from Tamil Nadu, Chandraya from Karnataka region and CP Damodara from Salem region will attended the meeting. Captains of the weaving industry from Bangalore, Salem, Mumbai, Erode, Dodbalapur, Bhiwandi and Surat were at the meeting.