While the spinning mills association has announced that it will reduce production by 50% due to the unprecedented industrial crisis, they have urged the central and state governments to take appropriate steps to protect the livelihood of lakhs of people.
Coimbatore: The Spinning Mills Association has urged the central and state governments to take steps to protect their livelihood as the industry has been hit due to the emergency.
It is not an exaggeration to say that the textile sector provides the highest employment opportunities in the industrial sectors of the country with less investment.
The textile industry is an industry that embraces all classes, from educated graduates to ordinary wage labourers. The textile sector has been plunged into a severe industrial crisis, questioning whether the governments have failed to embrace such a industry. The spinning mills, the mother industry of the textile industry, take first place.
Tamil Nadu is home to over half of the country's spinning mills. There are almost 2,000 mills in functioning, including spinning mills that create cotton yarn, open-end spinning mills that make waste cotton yarn, and recycling mills.
Around 15 lakh families live directly and indirectly through these spinning mills. At this juncture, the question arises as to what will happen to the future of lakhs of families and textile spinning mills as there is a severe crisis in the textile industry.
They said the spinning mills were running at a loss due to imports from abroad due to the extraordinary economic situation in the world. In particular, the yarn produced has been forced to be sold at a loss of Rs. 20-25 per kg.
They said that the spinning mills were losing money due to imports from other countries as a result of the world's abnormal economic situation. The yarn in particular has been compelled to be sold at a loss of Rs. 20-25.
The spinning mills, which used to function on a three shift basis for 365 days in a year, are now providing less than 50 per cent employment. While rival countries like Bangladesh, Vietnam and China had exported the yarn, at present, they are producing locally and doing business to garment companies there.
While exports from India to such countries have dropped considerably, rival countries have now started entering into imports as well. As a result, domestic yarn production is struggling with inadequate trade.
At this point, the sale of locally manufactured yarns has slowed because the price of imported yarn from outside is cheaper than the market price in India. available in India. As a result, the yarn
produced has to be sold at a loss.
In this situation, the spinning mills association is looking at the challenges they face and are looking for solutions. The entrepreneurs who were in crisis during the last Covid-19 crisis are now paying the loans given by the banks at the initiative of the Union Government along with interest.
They are seeking six months' time to repay the loans taken during the covid-19 crisis as they are reeling under the economic crisis. While the loan interest rate for spinning mills has risen from 7 to 11 percent, the spinning mills association has urged the union ministries of spinning mill entrepreneurs to reduce it to 7 per cent again.
Similarly, the Tamil Nadu government is also demanding immediate rollback of the increased power tariff. The spinning mills association has demanded the requests of the spinning mills, which are reeling under an economic crisis, be fulfilled immediately and the industry should be restored.
At this stage, the loss-making spinning mills decided to reduce production by 50%. This has affected the business of Rs 150-200 crore every day. As a result, the sector expects the Central and State governments to take urgent action in light of the loss of trade, labour livelihood, spinning mills, and industries.
It is not an exaggeration to say that the textile sector provides the highest employment opportunities in the industrial sectors of the country with less investment.
The textile industry is an industry that embraces all classes, from educated graduates to ordinary wage labourers. The textile sector has been plunged into a severe industrial crisis, questioning whether the governments have failed to embrace such a industry. The spinning mills, the mother industry of the textile industry, take first place.
Tamil Nadu is home to over half of the country's spinning mills. There are almost 2,000 mills in functioning, including spinning mills that create cotton yarn, open-end spinning mills that make waste cotton yarn, and recycling mills.
Around 15 lakh families live directly and indirectly through these spinning mills. At this juncture, the question arises as to what will happen to the future of lakhs of families and textile spinning mills as there is a severe crisis in the textile industry.
They said the spinning mills were running at a loss due to imports from abroad due to the extraordinary economic situation in the world. In particular, the yarn produced has been forced to be sold at a loss of Rs. 20-25 per kg.
They said that the spinning mills were losing money due to imports from other countries as a result of the world's abnormal economic situation. The yarn in particular has been compelled to be sold at a loss of Rs. 20-25.
The spinning mills, which used to function on a three shift basis for 365 days in a year, are now providing less than 50 per cent employment. While rival countries like Bangladesh, Vietnam and China had exported the yarn, at present, they are producing locally and doing business to garment companies there.
While exports from India to such countries have dropped considerably, rival countries have now started entering into imports as well. As a result, domestic yarn production is struggling with inadequate trade.
At this point, the sale of locally manufactured yarns has slowed because the price of imported yarn from outside is cheaper than the market price in India. available in India. As a result, the yarn
produced has to be sold at a loss.
In this situation, the spinning mills association is looking at the challenges they face and are looking for solutions. The entrepreneurs who were in crisis during the last Covid-19 crisis are now paying the loans given by the banks at the initiative of the Union Government along with interest.
They are seeking six months' time to repay the loans taken during the covid-19 crisis as they are reeling under the economic crisis. While the loan interest rate for spinning mills has risen from 7 to 11 percent, the spinning mills association has urged the union ministries of spinning mill entrepreneurs to reduce it to 7 per cent again.
Similarly, the Tamil Nadu government is also demanding immediate rollback of the increased power tariff. The spinning mills association has demanded the requests of the spinning mills, which are reeling under an economic crisis, be fulfilled immediately and the industry should be restored.
At this stage, the loss-making spinning mills decided to reduce production by 50%. This has affected the business of Rs 150-200 crore every day. As a result, the sector expects the Central and State governments to take urgent action in light of the loss of trade, labour livelihood, spinning mills, and industries.