ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Margins Chewed

Longer Leash for Cotton Textiles THE cotton textiles industry has been pressing for relaxation of controls, and more emphatically for a rise in the controlled prices. By its new policy the Government has now met the industry's demands more than half way. The new policy reflects considerable refinement in the employment of the control mechanism. The essential constituents of the policy are as follows: (a) The proportion of controlled varieties has been reduced to 25 per cent of the production, (b) A price rise of two per cent has been given to the controlted varieties through changes in multipliers, though for the consumer this rise has been neutralised by adjustments in the excise duties, (c) Some varieties of cloth such as dhoties, sarees, shirting, and drill in the higher- medium and superfine categories have been decontrolled, (d) Mills have been given the freedom to produce shirting and long cloth of the higher-medium qualities to the extent of 10 per cent above the 1967 level, provided the Textile Commissioner approves the price, (e) Mills producing more than 25 per cent in controlled, defence or export varieties have been given an incentive of four paise per metre on the extra production of controlled cloth. Similarly, a penalty of six paise per metre is to be levied if production of controlled cloth is below 25 per cent, (f) Changes, mostly in the form of rationalisation, have been made in the excise duty structure and rates.

Dear reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here


(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top