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Saving the garment industry from the throes of a crisis with a lifeline such as zero excise duty for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stages, is expected to help bring down prices.
Kolkata-based Dollar Industries, which makes undergarments, is willing to pass on the benefits to consumers with a 5 per cent drop in prices. “With no excise duties, we will now have a level playing field with the unbranded players. We will pass on the benefit to consumers with a 4-5 per cent drop in prices,’’ said Vinod Gupta, Managing Director, Dollar Industries.
Two years ago, the textile industry was slapped with a 12 per cent increase in excise, which had taken a toll on readymade garment players. “It is a time for celebration. There will be a markdown on prices by 4-5 per cent and demand will be back. Discount periods will also come down,’’ observes Anil Lakhani, Managing Director, Giny & Jony.
Expecting better days for the industry, Ashish Dikshit, CEO, Madura Fashion, said, “The apparel and textile industry has witnessed a significant slowdown in the last two years due to the combined impact of inflation and excise duty. The new excise regime proposed would significantly ease the cost pressures in the industry and should also bring cheer to consumers and encourage greater spending.’’
Indian Terrain’s Senior Vice-President Amitabh Suri added, “Prices may not go up further. Retailers were planning a price hike during Diwali, but now that may not happen.”
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