Spinning units in India want the duty on synthetic fibers which is presently at 12.36 per cent to be brought down on par with that of cotton. Right now synthetic yarn spinning units face an inconsistent supply of synthetic fibers from domestic manufacturers. And those mills which import the fiber are forced to pay 23 per cent duty, making the yarn less competitive in the domestic market.

Exporters say they are positioned well to manufacture and supply yarn and fabrics but that face inadequate export incentives. They want an export incentive of seven per cent to encourage consistent and substantial export volumes. For long the spinning industry has been wanting a reduction of the hank yarn obligation from 40 per cent to 10 per cent and that the Cotton Corporation of India should function as a bridge between the cotton farmer and the mill sector and not as a trading body.

Especially in Tamil Nadu the industry wants VAT reduction on cotton, cotton yarn and synthetic yarn from five per cent to two per cent, the end of the one per cent cess on sale of cotton and cotton waste, and establishment of processing centers in coastal areas for cost effective processing of yarn, fabrics and finished goods.