Recommendations for ensuring Survival of Power Looms in the next Union Budget.

In view of the tremendous Employment Potential of the MSME-run Power Loom Industry undergoing severe crises for the last several years due to various reasons, we find this opportunity to request your honor to ensure the survival of the decentralized Power Loom sector and millions of the laborers employed therein.

1. Ban on Raw Cotton & Yarn Exports: Skyrocketing raw cotton and yarn prices besides continuous high altitude fluctuations in their prices has turned thousands of the tiny weavers bankrupt. Hence, there is an urgent need to immediately ban the exports thereof and remove of existing import duty on raw cotton.
2. Encouraging fabric and garment exports: The national interest deserves exports of the value-added and final products instead of the raw materials thereof. Comparative disadvantages in competitiveness in the international market from China, Bangladesh, Vietnam, etc. elaborates an urgent need to encourage the exports of fabrics and garments. Hence, the duty drawback and other incidental incentives need to be uplifted immediately.
3. Technology up-gradation: Considering the technological backwardness of the Indian textile industry TUFS needs to be continued with further simplification and Weaving as well as Processing sectors need to prioritize and additionally subsidized.
4. Anti-dumping duties: Cheap imports from China and the dumping of Chinese textiles through SAARC countries have tremendously affected the domestic textile industry. Hence, anti-dumping duties need to be immediately imposed, and dumping through neighboring countries needs to be sincerely discouraged by mandating Certificate of Origin.
5. Shelter for Workers: Miserable circumstances of the BPL labors since decades in the entire textile value chain necessitates adequate provisions for arranging shelter and health care facilities for the vulnerable millions. Kindly, arrange for their preferential inclusion and adequate reservations in PMAY and all other housing schemes of the Government.
6. GST: Any attempt to eliminate the inverted duty structure of GST more particularly on Power Loom Fabric is bound to target millions of jobs of the poor. Hence, the 5% GST on fabrics needs to be kept as it is.
7. Simplification of Govt. Schemes: An analysis of various Government Schemes run by the Ministry of Textiles will reveal that most of them are exclusively meant for the big and mighty whereas the MSME Power Loom sector is at the loser’s end. Hence, almost all the schemes need to be suitably modified.

These are a few suggestions that need to be incorporated in the ensuing Union Budget. We hope for favorable and sympathetic consideration.