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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 197] NEW DELHI, SATURDAY, DECEMBER 6, 1969/AGKAHAYANA 15,1891

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF FOREIGN TRADE

RESOLUTION

TARIFFS

New Delhi, the 6th December 1969

No. 11(l)-Tar/69.—The Tariff Commission has submitted its Report on the con- tinuance of protection to the Sericulture Industry on the basis of an inquiry under- taken by it under Sections 11 (e) and 13 of the Tariff Commission Act, J 951 (50 of 1951). Its recommendations are as follows: —

(1) The continuance of protection to the Sericulture Industry for a further period of five years at the existing rotes is recommended. With a view to keeping a watch on the progress of the sericulture industry, a review may be held every alternate year.

(2) If at any stage imported raw silk is needed to be used for re-export after fabrication, full drawback of duty may be allowed. Concessional rates of duty on the plea that such silk is needed for export or for substi- tution of exported textiles would, however, not be justified.

(3) As spun silk yarn has substantial export potential, it is advantageous to convert internally all the available silk waste and then export it The existed export policy may be reviewed and further augmentation of installed spinning capacity considered if this becomes necessary for the purpose.

(1099)

(4) With the increase In the production of synthetic fibres it would be desir- able to discourage internal consumption of silk and develop exports to the largest possible extent. Internal use of substitutes may be en- couraged 10 the extent necessary,

(5) Since prices oi imported silk have a great impact on the domestic market, it is suggested that imports and distribution of imported raw silk should be canalised through the State Trading Corporation OT the Central Silk Bonrrl. in order 1o avoid sudden fluctuations in the domestic pi ices.

(6) Aireemf; with the conclusions of the Filature Committee, it has been strongly i ecommended that the problem of improving the quality of reeling cocoons should be tackled at the basic level of production of mulberry lenves and cocoons.

(7) Thp attention of the Central Sdk Board as well as Gf the concerned Stale Governments is drawn to the alarming development in the In- crease in the cost of production of mulberry leaves and it is recom- mended thnt way* nnd means may be explored to bring down the cost of leaves

(8) Since Ihe District of Dchra Dun in Uttur Pradesh is heavily forested, it would be desirable to undertake mulberry plantation in the forest areas where retiring operations can be conducted in order to provide plentiful supply of leaves to rearers. A planned silovlcultural project for mul- berry plantation is bound to yield good results and thereby increase the production of mulberry silk manifold.

(!)) The Indian sericulture industry has to improved its performance six-fold in order to reach .Japanese standards. As a first step, irrigation faci- lities need to be introduced for all mulberry cultivation. Attention may also be given to the nutritive content of mulberry leaves to en- sure healthv growth of worms and reduction in wastage by mortality

(10) It is strongly re< on-.mpni.1ed that the basic principle, that all layingB must lie tested should he implemented and that the State Government of West Bengal mav also enact suitable legislation to ensure that the weed oroducinfi grninages are licensed and adequately equipped for testing layings.

(11) As the main reason for the reduction in the number oil layihgs used in Jammu and Kashmir is said to be the general decline of sericulture In that Statr urgent attention should be devoted to the solution ctf the problem of the sericulture industry in that State.

(12) Reiterating the recommendations made in the 1966 report, a note of warn- InR i<< sounded that unless effective steps are taken to rejuvenate the Industry in Jammu and Kashmir the industry may disappear from this State in the next ten years.

(ltf) The quality of raw silk instead of improving, appears to have deteriorat- ed since the I9fifi inquiry. It is difficult to understand why etepn were not taken to eauip properly the testing houses, particularly when large =;ums are available for the purpose to research institutions and the Central Silk Board It is hoped that this serious shortcoming will be removed urgentlv so that testins may be rendered scientifically correct and acceptable.

(14) It has been lecoramended that the filatures may join the LSI. Certifica- tion Marking Scheme.

2. Government accept recommendation (1). Protection at the existing effective rates of protective duty to Ihe products of the Sericulture Industry h proposed to l>e continued for n further period of five years ending on the 3lKt December, 1974 A slight rationalisation of the existing rates of protective duty on (i) silk yarn. including silk sewing thread and silk waste [Items Nos. 46(1). 47 and 47(1)1 C.T.I, and (in silk fabrics (Item No. 48 T.C T. is proposed to be effected by adopting a •nngle rate of duty in each case instead of the varying rates in force at present, as 'he differences have ceased to have any special significance Necessary legislation for this purpose will be undertaken in due course.

i. As regards lecommendntion (3) while agreeing that it is to the national advantage to export silk yarn rather than silk waste, Government would observe that the piesent spinning capacity, including the capacity licensed appears to be .idequnle for thij purpose,

•1 With regaid to recommendation (4) there is at present no indication that juternal consumption is standing in the way of the export of silk fabrics. The question of taking step¹; to discourage the internal consumption of silk fabrics will be considered if ,ind when ,i situution arises where internal consumption is found 1o be hampering exports

5. As regards lecommendation (5), Government accept the need to minimise fluctuations in the domestic prices of raw silk. In the interests of export promotion, besides the need for consolidating the internal demand. They have accordingly accepted the recommendation of the Tanll Commission for canalising the import of raw silk through the State Trading Corporation oi the Central Silk Board,

0 With reference to lecommendation (14), owing to the lack of adequate arrange- ments for gardlng and testing of .silk, it is considered premature for filatures to loin the I.S.I Certification Marking Scheme This may be feasible Inter when aclequati arrangements fot teslmR and grading arc made.

7. Government have lakp I noti of recommendations (2) and (6) to (12), and suit- Hble ateps will be taken to implement them to the extent possible. Recommenda- tion (13) has also been noted and the Central C'ilk Board will look into the question further with a view to taking appropriate action The attention of the Concerned State Governments is invited to rero'nrric-nciatlons (6) to (12) The attention of the industry is partlculnrh di.nvn to leiommendatlon (1)

ORDER

Ordered that the Resolution be published in the Ga/ette of India and a copy thereof iommuni< ated 1o all concerned

S. VENKATESAN Jt Se 1102 1HE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC. 1) PART I—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY H03 n o4 THE GAZETTE OF INDIA EXTRAORDINARY [PART I—SEC. 1]

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