Govts urged to bail out textile sector
The industry, especially the exporters were severely hit by the rupee appreciation, by which the realisation and profit margin have come down drastically, S V Arumugam, Chairman, Southern India Mills' Association (SIMA) said.
By PTI |
COIMBATORE: Textile industry, particularly of Southern Region on Friday sought the intervention of both the Centre and State governments, to bail it out from various problems, like cost escalation, power and raw material prices and also rupee appreciation.
The industry, especially the exporters were severely hit by the rupee appreciation, by which the realisation and profit margin have come down drastically, S V Arumugam, Chairman, Southern India Mills' Association (SIMA) said.
Addressing the second conference of CEOs organised by SIMA, Arumugam said due to shortage of production of Extra Long Staple cotton in India, despite production of 300 lakh bales of cotton, the industry has to import more than 20 lakh bales, for which a duty of 10 per cent has to be paid, which was adding to the cost of production.
The Centre, therefore, has to intervene and reduce the duty at least by five per cent, he said.
He also asked Union Minister of State for Textile, E V K S Elangovan, who was present, to prevail on the Finance Minister, to include wind mills under Technology Upgradation Scheme, to tide over the power problem being faced in Tamil Nadu.
Prem Malik, Chairman, Cotton Textile Export Promotion Council, asked the industry to invest, instead of machinery, in marketing and to expand share in other potential export markets.
The industry should also diversify their products with other fibres, without depending on cotton alone, Malik said.
The industry, especially the exporters were severely hit by the rupee appreciation, by which the realisation and profit margin have come down drastically, S V Arumugam, Chairman, Southern India Mills' Association (SIMA) said.
Addressing the second conference of CEOs organised by SIMA, Arumugam said due to shortage of production of Extra Long Staple cotton in India, despite production of 300 lakh bales of cotton, the industry has to import more than 20 lakh bales, for which a duty of 10 per cent has to be paid, which was adding to the cost of production.
The Centre, therefore, has to intervene and reduce the duty at least by five per cent, he said.
He also asked Union Minister of State for Textile, E V K S Elangovan, who was present, to prevail on the Finance Minister, to include wind mills under Technology Upgradation Scheme, to tide over the power problem being faced in Tamil Nadu.
Prem Malik, Chairman, Cotton Textile Export Promotion Council, asked the industry to invest, instead of machinery, in marketing and to expand share in other potential export markets.
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The industry should also diversify their products with other fibres, without depending on cotton alone, Malik said.
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