In a representation submitted to the government, it said that the industry had been passing through a severe recession lately and the fabric prices had come down drastically. And since the grey weavers were not getting reasonable returns, large number of powerlooms were forced to closed down, it claimed.

``While we are facing the worst recession in the industry, we are also open to competition against import of fabrics. This is being done without providing adequate protection to the indigenous industry,'' it alleged.

Thus production of man-made fibres and filament yarns were decreasing because of high tariff rate, it said. ``While our raw materials have become costlier, the import of textiles have become comparatively cheaper,'' it added.

The federation also suggested a five per cent customs duty on made-made filament yarns and fibres and acetate and cuprammonium filament yarns, which were not manufactured in the country. One of the reasons, the Federation pointed out, why manufactures could not develop these fabrics in India was the non-availability of raw materials.

In order to develop these fabrics in India, these specialised yarns should be allowed to be imported with a marginal customs duty, it said. ``This will help reducing the import of these fabrics and at the same time increase our exports as well induce indigenous manufacturers to introduce the same in their product mix,'' it claimed

While suggesting custom duty on viscose and nylon filament yarn be reduced five per cent and polyester filament yarn be reduced 15 per cent, the Federation appealed to the government to remove custom duty on all textile machineries.

The price of nylon filament yarn in the international market was very high and therefore if the entire custom duty on it is removed, there will be very little import, it claimed.

The Federation also suggested that all fabrics, whether cotton or man-made, should bear the same rate of excise duty as all fabrics costing Rs 30 per sq mtr was the ``common man's fabrics''.

If the Indian textile industry has to modernise then the powerloom sector and the independent textile processing sector will have to be modernised, it said. adding that the government to allocate adequate funds to modernise it.