India Union Finance Minister Pranab Mukherjee reduced basic customs duty on wool waste and wool tops from 15 percent to 5 percent in budget 2012-2013. Although the minister did not completely do away with the duty, wool and woolens exporters in India are happy that the duty is reduced to minimum.
While wool top is used for making fine woolen apparels, wool waste has to be processed further to produce yarn that is subsequently used for manufacturing woolen garments.
Ashok Jaidka, chairman of the Wool and Woolens Export Promotion Council, said, "The basic customs duty on wool has been reduced by 10 percent. We had demanded a zero percent duty. China already has a zero percent duty. But, we are happy with the government's decision to reduce the duty to the minimum."
Briefing about impact of the reduction in duty, he said, "There will be no affect on exports. However, an affect may be seen on the domestic market."
Commenting about the performance of India's woolen garment exports, he stated, "The target for last fiscal year might have been achieved, though the final figures are yet to be released. However, for the current fiscal year 2012-2013, there are less number of orders because of a slowdown in Europe and the United States. In both markets, stocks have piled up from the last year, and hence they are buying less."
Reprinted in part from Fibre2Fasion.com