Textile mills stop production, lose Rs 500 cr

COIMBATORE: Demanding suspension of cotton exports about 4,500 small, medium and large textile mills in the country today stopped production even as the central government during the day scrapped import duty and withdrew incentives on shipments of the commodity.

Trade sources said according to their estimation the loss due to stoppage of production is Rs 500 crore.

Other demands of the mills included zero duty on cotton import, withdrawal of export incentive on cotton, channelising and restricting the quantity of cotton export, reducing the margin money for working capital from 25 per cent to 10 per cent at seven per cent interest rate on par with agricultural loan.

The Southern India Mills' Association, Tamil Nadu spinning Mills Association, South India Small Spinners' Association, Madurai Spinners Association, Annur spinning Mills Association and India spinning Millowners Association have called for the production stoppage, which was supported by Confederation of India Textile Industry at National level.