Our Bureau

Mumbai , Feb. 12

WITH the shedding of quotas worldwide in 2005, there will be huge opportunities for India, especially in polyester.

According to Mr S. P. Sapra, President, Polyester, Reliance Industries Ltd, polyester has been denied entry in certain countries, even where quotas are in place, and, in terms of size, the consumption in these markets is four-five times that of India's polyester production.

Mr Sapra was speaking to yarn merchants associated with Bombay Yarn Merchants Association and Exchange Ltd at its Jubilee celebrations on Wednesday.

He added that yarn merchants and manufacturers had to "gradually progress and develop partnerships in the industry". They needed to understand that the current trade environment was fast changing and trends indicated that new products that incorporated value addition and better pricing were the need of the hour.

Thirty years ago, Mr Sapra said, polyester was mainly produced in the West. By 2010, more than 80 per cent of the polyester yarn fibre will be produced in Asia. India has lagged behind mainly because of impediments to the polyester sector's growth, which have now been removed.

Mr K. K. Agarwal, Chief Commissioner of Central Excise, Mumbai, said that the textile sector contributed a significant portion to the Central Excise kitty and until the Cenvat completed the chain, many weaving and dyeing units were outside the purview of the department.

However, globalisation, the scenario post-2005, and new legislation necessitated the weaving sector getting organised and so it was brought under Cenvat's purview. This would bring the sector into the mainstream and help it reap attendant benefits.

Mr Agarwal added that yarn merchants were beginning to see the positive side of Cenvat. However, there was still tax evasion on a large scale and manufacturers and merchants needed to change their approach on this issue.

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