CII Nagaland welcomes move, says will create more employment
DIMAPUR, JUNE 11 (MExN): The Confederation of Indian Industry (CII), Nagaland branch has welcomed the Government of India’s decision to revise the basic customs duty for bamboo import from 10% to 25%.
“This decision will go a long way in making the domestic Round Bamboo Sticks Industry viable as the cost of logistics is very high from the North Eastern States to the rest of India,” said highlighted Mr. Abhijit Barooah, Chairman, CII, North East Council.
A press release from the CII Nagaland State Council Chairperson, C Merenla meanwhile informed that the domestic industry has now been granted a level playing field. With earlier 10% Basic Customs Duty levied on actual users, the landed cost after customs clearance worked out to Rs 91,300 per ton approximately.
With the revised customs duty of 25% being levied uniformly for all categories of importers, the landed cost after Customs Clearance works out to Rs 1,04,000, it added.
As such, the CII stated that the domestic manufacturers now have to compete with the benchmark price of Rs 1,04,000 per ton instead of Rs 93,500 per ton. The domestic manufacturers now have a price advantage of Rs 10,000.
“The viability gap is met with this amount. The domestic Industry can now look forward to a promising future,” the CII said. It further said that the hike in duty and its effects would create employment for thousands of youth in the NE, especially in rural areas.
Informing that the Government of India has set up a National Bamboo Mission (NBM) with a view to promote bamboo based industries, the CII said that the North East with the largest Bamboo resource in the country will benefit due to the NBM.
Abundant bamboo is available in the region to meet the annual Indian round bamboo sticks requirement of 60,000 tons for the agarbatti industry, the CII informed.
It added that proper bamboo resource mapping will be required to identify the location, species, quantity, ownership and the tentative price. Both NBM and State Bamboo Missions can play a major role in conducting this exercise for the benefit of the Industry, the CII stated.
