In the upcoming Union Budget, the Southern India Mills’ Association (SIMA) has sought allocation of Rs 9,000 crore for the Amended Technology Upgradation Fund Scheme (ATUFS). Of this, nearly Rs 6,000 crore is needed to meet the committed liabilities under earlier versions of the scheme.
It is also imperative to know that in the last few years, textile sector has not got allocation of more than Rs 7,000 crore. The Association has also sought working capital for mills to buy cotton and the creation of a National Textiles Fund. This will help meet the financial needs of textile units for infrastructure creation and technology adoption.
The Association highlighted bamboo fibres can be compared with viscose fibres as the source of raw material is nearly the same. The bamboo fibre is made of bamboo pulp and viscose is made of wood or eucalyptus pulp. So, based on this factual criterion, imported bamboo fibre has been classified by the Customs Department under Tariff Headings 5504 9090 or 5504 1000.
Due to the absence of a specific entry for the Bamboo Fibre in the Customs Tariff Act, 1975, importers were directed to clear the product as artificial staple fibre. Hence, a specific code is needed for bamboo fibre, it said.