Textile mills stop production, lose Rs500 cr

Textile mills stop production, lose Rs500 cr
Comment E-mail Print Share
First Published: Thu, Jul 10 2008. 10 52 AM IST
Updated: Thu, Jul 10 2008. 10 52 AM IST
PTI
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 Rs500 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% to 10% at seven per cent interest rate on par with agricultural loan.
The Southern India Mills’ Association, Tamil Nadu Sinning 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.
Meanwhile, the textile industry in Erode, noted for handloom fabrics has lost Rs150 crore in the last one month due to a combination of factors like high yarn price and intermittent power cuts, a top office bearer of the Erode handloom manufacturers association said here today.
R S Nataraja Mudaliar, president of the association said the industry was facing heavy losses in production and sales for the past one month due to steep increase in yarn price.
Yarn prices shot up by Rs 50 to Rs100 per bundle of five kg. 20 count yarn, which used to sell at Rs360 per five kg bundle was now Rs430 per bundle. Similar was the case with 30, 60 and 80 count yarn. The industry was also facing a four-hour power cut every day, he said adding that the hike had necessitated revision of prices. however buyers were relcutant to pay more, he said
On normal days Rs10 crore worth textile goods are produced using two lakh powerlooms and 5,000 handlooms. buyers from all over india visit the town, make purchases and despatch the goods to their areas by lorries or through rail.
Comment E-mail Print Share
First Published: Thu, Jul 10 2008. 10 52 AM IST
More Topics: Textile mills | production | export | yarn | handloom |