India’s blanket making units face a bleak future following the decision to cut the levy of import duty and GST from 29 per cent to 16 per cent on all imported blankets and fabrics. These units produce nearly 1.5 lakh mink blankets every day, out of which 15 per cent are exported to North America, Europe, Russia and Australia.
It is feared the decision to decrease customs duty and other taxes under the GST regime will shut down over 50 large scale mink blanket manufacturing units in the country as these units will find it difficult to compete with cheap imported mink blankets after the GST rollout.
They cannot compete with mink blankets imported from China as these would be cheaper by at least 13 per cent due to decreased duties on imported blankets from July 1. Jalandhar-based Shital Fibers is a mink blanket manufacturing unit that contributes around 70 per cent to India’s mink blanket exports. The company produces nearly 45,000 blankets a day.
The textile industry employs nearly six crore workers. Under the GST regime, not only the mink blanket industry will suffer huge losses but the textile, yarn and fiber industries, too, will incur losses.
Most blanket manufacturers in Panipat have now shifted to making quilt.