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Textile industry to seek help from Chidambaram

Textile industry to seek help from Chidambaram
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First Published: Sun, Aug 24 2008. 11 43 PM IST
Updated: Sun, Aug 24 2008. 11 43 PM IST
PTI
Chandigarh: Facing difficult times of lower margins due to slowdown in demand and rising input costs, the textile industry is planning to seek extension of 4% interest subsidy beyond 30 September and hike in duty drawback rates from Finance Minister P Chidambaram.
“We will seek help from the Union Finance Minister to help us in this situation so that textile industry could survive,” President and Executive Director Vardhman Textiles Limited D L Sharma said.
It was decided by National Textile Committee of CII in a meeting that was attended by 15 companies including Reliance Industries Limited.
The growth in textile exports has reduced to 1% against 10-20% in the last 1-2 years because of the global slowdown in the industry coupled with rising rate of interest.
The delegation, led by CII National Textile Committee Chairman SP Oswal, is expected to meet Chidambaram on 26 August, seeking extension of interest subsidy for at least one or two years and increasing duty drawback rate by 2%.
“The cost of cotton has increased by almost 40% this year compared to last year. As a result of which our margins have turned nil,” he said.
The industry would also demand the government to regulate ‘reckless´ export of cotton from the country. The cotton export from the country in 2007-08 has gone up to 105 lakh bales.
Since the textile industry generates jobs, he said the government should protect it in the best possible way.
The industry, facing the adverse impact of inflation, would suggest the government to provide loan to textile exporters at reduced rates of interest so as to at least protect the country’s exports.
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First Published: Sun, Aug 24 2008. 11 43 PM IST