The key issue is to higlight the concerns of garment industry
January 21, 2005 (Press Release) --
: The Clothing Manufacturers Association of India (CMAI) which represents a large cross section of garment manufacturers, retailers and exporters, has made a strong representation to the Hon'ble Prime Minister of India and the Union Ministers of Textiles, Commerce, Industry and Health, to ban the import of second-hand readymade garments into the country. The import of huge volumes of worn readymade clothing into Kandla SEZ from different countries for domestic sale is contributing to a major loss of foreign exchange to the country, in addition to being a potential health hazard as these garments are resold in completely unhygienic conditions.
Revenue & employment loss concerns
The worn garments are imported on the basis of weight to claim an overall lower duty, whereas the sale of such garments is on “per piece” basis. These second hand clothes are sold dirt-cheap in the country at barely 20% of a normal realizable price, which is having a damaging effect on the entire Textile & Garment Industry. Every piece of garment manufactured in India takes about 6½ man-days from spinning/weaving of the fabric upto garment making and finishing. The cheap sale of these imported worn garments potentially affects employment of 72 lakh workers directly employed in the garment industry, about 80% of which are women supporting the family income, and others in ancillary industries such as manufacturers of buttons, zips, buckles, sewing thread, packing materials etc. Taking a conservative average sale price of Rs. 180/- for a new piece, the sale of the second hand garments at one-fifth this price results in a loss of about Rs. 6000/- crores per anum which is 8% of the total annual domestic sale of the garment industry.
Health concerns
The imported worn clothing is segregated into 3 grades, of which Grade A quality is re-exported after appropriate washing, ironing and packing. However, the B grade variety is allowed into the country for resale without being washed or fumigated, which carries the immense risk of containing several communicable viruses such as Dengue Fever, Malaria, Sars etc. Grade C, which also remains unhygienic like grade B, is used for extracting yarn/fibre. It is estimated that about 200 Tons (10-11 lakh of such pieces) leave Kandla SEZ every day for distribution in various cities.
In view of the above, CMAI has appealed to the government to:
1. Ban future imports of worn clothing.
2. Order the current stocks lying at Kandla to be re-exported, which will also earn some foreign exchange. Alternately, the goods should be thoroughly washed, fumigated and certified for domestic consumption.
3. Make duty payable on “per piece” basis so sale prices can be offered appropriately in the domestic market.
If this situation is not curtailed immediately, it can adversely affect the domestic textile and garment manufacturing industry which is very well equipped to cater to the entire needs of the domestic and export markets.
For more information, please contact:
Mr. S L ShahCMAIMahalaxmi ChambersB. Desai Rd.Mumbai 400026.Tel: 23538245, Mobile: 9820045042 Navin Nair Madison PR navin@blr.madisonindia.com 98450-94507
: The Clothing Manufacturers Association of India (CMAI) which represents a large cross section of garment manufacturers, retailers and exporters, has made a strong representation to the Hon'ble Prime Minister of India and the Union Ministers of Textiles, Commerce, Industry and Health, to ban the import of second-hand readymade garments into the country. The import of huge volumes of worn readymade clothing into Kandla SEZ from different countries for domestic sale is contributing to a major loss of foreign exchange to the country, in addition to being a potential health hazard as these garments are resold in completely unhygienic conditions.
Revenue & employment loss concerns
The worn garments are imported on the basis of weight to claim an overall lower duty, whereas the sale of such garments is on “per piece” basis. These second hand clothes are sold dirt-cheap in the country at barely 20% of a normal realizable price, which is having a damaging effect on the entire Textile & Garment Industry. Every piece of garment manufactured in India takes about 6½ man-days from spinning/weaving of the fabric upto garment making and finishing. The cheap sale of these imported worn garments potentially affects employment of 72 lakh workers directly employed in the garment industry, about 80% of which are women supporting the family income, and others in ancillary industries such as manufacturers of buttons, zips, buckles, sewing thread, packing materials etc. Taking a conservative average sale price of Rs. 180/- for a new piece, the sale of the second hand garments at one-fifth this price results in a loss of about Rs. 6000/- crores per anum which is 8% of the total annual domestic sale of the garment industry.
Health concerns
The imported worn clothing is segregated into 3 grades, of which Grade A quality is re-exported after appropriate washing, ironing and packing. However, the B grade variety is allowed into the country for resale without being washed or fumigated, which carries the immense risk of containing several communicable viruses such as Dengue Fever, Malaria, Sars etc. Grade C, which also remains unhygienic like grade B, is used for extracting yarn/fibre. It is estimated that about 200 Tons (10-11 lakh of such pieces) leave Kandla SEZ every day for distribution in various cities.
In view of the above, CMAI has appealed to the government to:
1. Ban future imports of worn clothing.
2. Order the current stocks lying at Kandla to be re-exported, which will also earn some foreign exchange. Alternately, the goods should be thoroughly washed, fumigated and certified for domestic consumption.
3. Make duty payable on “per piece” basis so sale prices can be offered appropriately in the domestic market.
If this situation is not curtailed immediately, it can adversely affect the domestic textile and garment manufacturing industry which is very well equipped to cater to the entire needs of the domestic and export markets.
For more information, please contact:
Mr. S L ShahCMAIMahalaxmi ChambersB. Desai Rd.Mumbai 400026.Tel: 23538245, Mobile: 9820045042 Navin Nair Madison PR navin@blr.madisonindia.com 98450-94507
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