New Delhi, March 4 : Garment Manufacturers and Wholesalers in Delhi and Mumbai began an indefinite strike on Saturday against the government's decision to impose a 16 per cent excise duty on branded garments."We have decided to go on an indefinite strike to protest against the decision." `We want the duty to be withdrawn immediately," secretary general of the All India Garment Manufacturers and Wholesalers Association, Anil Arora said.AIGMWA is spearheading the strike in the capital which is being supported by other associations including the Mumbai-based Clothing Manufacturers Association of India and the Delhi-based Apparel Exporters and Manufacturers Association, he said.
"There are 20,000 units in Delhi alone employing around 2 lakh labourers. All the garment factories in Mumbai and Delhi will remain closed from Saturday to support the strike," Mr Arora said.
Mr Arora said that the association will organise a March to Parliament on Monday and submit memorandums to the Finance Minister Yashwant Sinha and Textiles Minister Kashiram Rana.
"We will participate in the meeting called by the textiles minister on March 7 and if the meeting is inconclusive we will continue our stir," Mr Arora added.
Meanwhile, All India Garment Exporters Common Cause Guild, in a letter to the finance minister, has said that the strike , as a result of the imposition of the excise duty on readymade garment, would severely would affect exports.
The result of the increase in excise on fabrics is that the fabrics price will increase by Rs 2 to Rs 6 per sq yards making garments uncompetitive in the export front, it was pointed out.
The 16 per cent excise levy on branded garments will wipe-out the country's remaining garments business infrastructure in the face of import influx once the QRs are lifted in April this year, it said.
The Guild also said that the tax benefits made available to the new units under the SEZ schemes should be also extended to all the garment exporters exporting 100 per cent of their production irrespective of their location.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.