This story is from March 15, 2011

Widespread protests mark bandh at garment units

A deserted look haunted garment manufacturing centres across the country as the 48-hour bandh against excise duty started on Monday.
Widespread protests mark bandh at garment units
MUMBAI: A deserted look haunted garment manufacturing centres across the country as the 48-hour bandh against excise duty started on Monday. when the clattering of sewing machines gave way to silence.
Small unit owners in Indore even locked up their sewing machines with chains. "We are offering the keys to finance minister Pranab Mukherjee who has decided to levy a 10% excise duty on an industry already burdened with rising costs of raw material and multiple taxes," said an owner.
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The new duty affects all branded garment manufacturers having a minimum turnover of Rs 1.5 crore. , including those who produce shirts and hosiery that is sold in the streets. Around 1.75 lakh factories will be shut over two days, causing a loss of Rs 600 crore. to the industry.
Small unit owners in Indore draped their sewing machines in chains and locked them shut. ''We are offering the keys to finance minister Pranab Mukherjee who has decided to levy a whopping 10 percent excise duty on an industry already burdened by rising costs of raw material apart from multiple taxes,'' said a distraught owner. The new duty affects all branded garment manufacturers having a minimum turnover of Rs 1.5 crore, including those who produce shirts and hosiery that is sold in the streets.
No less than 60,000 units in Mumbai will stay shut during the bandh. A rally of 30,000-odd workers who could risk losing their livelihood owing to the closure, was held at Kamgar Maidan in Parel Monday. "We are at pains to explain to the authorities that indigenous industry is being sacrificed while imported garments from China and Bangladesh are being facilitated with lower import duty," said Viren Shah, president, Federation of Retail Traders Welfare Association. Rahul Mehta, president of Clothing Manufacturers Association of India who has lobbied in New Delhi in vain, said workers not just in big cities Mumbai, Delhi, West Bengal, Ludhiana, Indore and Chennai but also the interiors could become unemployed.
Since the excise duty came into effect on March 1, big brands have increased rates by up to 15%, while small traders are removing their labels to go unbranded. However, the finance ministry has ruled out a rollback.
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