Shri M Senthil kumar, Chairman, Powerloom Development &Export Promotion Council (PDEXCIL), while commenting on the steep increase in the prices of cotton yarn, said, the price increase has completely taken aback the manufacturers, as they are neither in a position to produce fabrics at reasonable prices nor they could draw out their future production plans in view of the uncertainties caused.
Shri Senthil Kumar feels that in order to overcome the adverse effect caused on account of spurt in yarn prices, immediate measures are called for to bring the prices to the moderate levels, as it prevailed in the previous year. In this context he has suggested to reduce the customs duty on imports of raw cotton, the basic raw material from the
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| current level of 10% to ‘Nil’ duty. As the cotton-sowing season is over reduction in import duty on cotton yarn would not affect the indigenous production. He also remarked that indigenous raw cotton prices are lower than the international prices and hence reduction in customs duty on raw cotton will not have any adverse effect on the prices of indigenous raw cotton.
Further on the question of widening the raw material base, the Chairman said that import duty on polyester fibre also need to be reduced to nil duty from the current basic duty of 20%. Subsequently removing anti-dumping duty imposed on imports of polyester fibre in view of limited indigenous production. If this measure is taken it would enable the textile industry to get adequate quantum of raw cotton as well as polyester fibre to meet its requirements. 
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