Budget 2022 Expectations: Slash import duty on cotton, impose export duty to check escalation in domestic prices: Dollar Industries MD
Budget 2022 Expectations: Domestic prices of raw cotton have been on rise and industry has been urging the government to abolish 5% import duty on it, Dollar Industries Managing Director Vinod Kumar Gupta says.
Almost three-more weeks remaining for the Union Budget 2022 and various sectors have already started voicing their expectations from this year’s annual event. One such sector is the textile sector on which the government has been putting a lot of emphasis. To know what the sector is looking forward to, this time, Zee Business Executive Editor Swati Khandelwal spoke to Vinod Kumar Gupta, who is Managing Director (MD) of Dollar Industries.
Gupta said that the Production Linked Incentive (PLI) scheme extended for this sector by the government is very useful. The details on this scheme is still coming from the government and even the company is studying the scheme t take full advantage, he added.
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Government’s scheme of integrated textile park is another major growth-oriented scheme which is likely to be of great benefit for the sector, the MD said.
The industry has been demanding no changes in the Goods and Services Tax (GST) on hosiery segment, he said. It has rolled back the increase in GST which was to be implemented from 1 January 2022 and sent it to the rate rationalization committee and now it is to be seen what changes come, he further said.
Any changes in this basic segment will be detrimental to the industry and our federations have been in talks with the government on this issue, Gupta said.
The domestic prices of raw cotton have been on the rise and the industry has been urging the government to abolish 5 per cent import duty on it. It will allow more cotton imports to come into the country and further stablise the price of domestic cotton, Gupta said.
The industry is also urging the government to impose export duty on cotton to check high exports of cotton from the country. This is also leading to rise in prices, he lamented.
On company’s expansion plans, Gupta said that the company is constructing a logistics godown at a cost of Rs 50 cr. It is also doubling the capacity of its spindle mills which is currently at 22,000 spindles, he added. This will incur a capex of Rs 60-65 cr, Gupta informed.
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The capacity expansion exercise would likely be completed with 1-1.5 years, he said.
The union budget will be presented by Finance Minister Nirmala Sitharaman on 1 February.
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