A delegation of the Denim Manufacturers Association (DMA) led by Mr. Sharad Jaipuria, Managing Director, Ginni International, along with Mr. Y.C. Gupta, CEO, LNJ Denim, Mr. S.K. Gupta, CEO, Raymond, Mr. Akhilesh Rathi, CEO, Bhaskar Industries, Mr. Rajiv Dayal, Managing Director, Mafatlal Industries, and Mr. Mayank Jain, Director, Malwa Industries, met the Textiles, Industry and Commerce Minister, Mr. Anand Sharma, on July 19.
Mr. Jaipuria made a presentation to the Minister and gave him an overview of the denim industry, production capacity, export potential, domestic sales, etc. The industry, with its great potential, can expand and increase its market share in exports. Most of the denim mills in India are fully integrated and consume about 10 per cent of raw cotton produced in the country.
Mr. Jaipuria also referred to the present financial crisis in the industry because of the steep drop in cotton prices by about 40 per cent, imposition of 10 per cent duty on branded garments, withdrawal of 2 per cent interest subvention, etc.
He urged the Minister to immediately support the industry with reliefs like revision of duty drawback rates from 4.3 per cent to 9 per cent, suitable increase in the number of countries in Africa and Asia for FMS and MFLPS, an increase in duty credit scrip from 2 per cent to 5 per cent, restoration of 2 per cent interest subvention rate, and removal of the duty on indigo.
The Minister told the delegation that instructions have already been given to extend 2-3 per cent interest subvention to exporters with immediate effect. Duty drawback would be suitably revised and made more robust and interactive. Further, exporters won’t face any disadvantage on account of lower duty drawback rate.
The delegation was also told that the Ministry would look into the question of removal of duty on indigo.
The delegation also met Mr. Rahul Khullar, Commerce Secretary, Mrs. Rita Menon, Textiles Secretary, and Mr. A.K. Poojary, DGFT, and submitted a memorandum on the denim industry.