An Indian textile manufacturers association has demanded that the government lift the 16 per cent ad-valorem duty on independent processing units immediately and restore the duty to check losses of over Rs 25 billion.

"Due to the imposition of ad-valorem duty independent processors have to suffer frequent inspections and litigations which has adversely affected our production. Business loss during the last 40 days has been to the tune of Rs25bn," Arvind Poddar, president of the Federation of All India Textile Manufacturers Association (FAITMA) said.

The federation, which is expected to meet Finance Minister Yashwant Sinha, said it was willing to pay a higher stenter duty in place of the present ad valorem duty.

"The independent processing sector is not averse to paying duty. We have asked government to increase stenter duty slabs which could bring more revenue," he said, adding government should reduce contact points between itself and the industry.

Poddar said stenter duty should also be extended to composite mills so that a level playing field is made available to all sectors of the industry.

At present the decentralised power loom sector contributes 93.5 per cent to total production while the composite mill sector contributes only 6.5 per cent, he added.