The Recycled Textile Federation expresses disappointment as the Union Budget 2024-25 fails to address their expectations. The federation had hoped for the removal of import restrictions on viscose polyester cotton and special schemes for existing entrepreneurs.
Coimbatore: The Recycled Textile Federation has expressed disappointment over the Union Budget 2024-25, stating that it failed to meet the industry's expectations. The federation had hoped for announcements addressing their concerns, particularly regarding import restrictions on raw materials.
M. Jayapal, President of the Recycled Textile Federation, issued a statement highlighting the industry's grievances. He noted that Tamil Nadu accounts for 47% of India's textile production capacity, but the sector has been struggling since 2022. The federation had appealed to central government ministers to remove the restrictions on viscose polyester cotton imports, but the budget did not address this issue.
Jayapal explained that the high cost of raw materials, which is 20-25 kilos more than international prices, has made it difficult for Indian manufacturers to compete globally. This has led to an oversupply in the domestic market, causing price drops and losses. Consequently, many manufacturers had to reduce production, resulting in job losses for workers and investment losses for entrepreneurs.
The federation had high hopes that the budget would address their requests and that the government would take action. However, no such announcements were made. Jayapal also pointed out that there were no special schemes announced for existing entrepreneurs.
While the budget mentioned providing loans up to 100 crore without any mortgage bonds, Jayapal expressed skepticism. He noted that similar schemes announced in the past were not accessible to companies that had already taken loans due to various conditions. He fears that similar conditions might be imposed on this new scheme as well.
The Recycled Textile Federation urges the central government to announce measures that would ensure the availability of raw materials at international prices and provide incentives to boost exports.
M. Jayapal, President of the Recycled Textile Federation, issued a statement highlighting the industry's grievances. He noted that Tamil Nadu accounts for 47% of India's textile production capacity, but the sector has been struggling since 2022. The federation had appealed to central government ministers to remove the restrictions on viscose polyester cotton imports, but the budget did not address this issue.
Jayapal explained that the high cost of raw materials, which is 20-25 kilos more than international prices, has made it difficult for Indian manufacturers to compete globally. This has led to an oversupply in the domestic market, causing price drops and losses. Consequently, many manufacturers had to reduce production, resulting in job losses for workers and investment losses for entrepreneurs.
The federation had high hopes that the budget would address their requests and that the government would take action. However, no such announcements were made. Jayapal also pointed out that there were no special schemes announced for existing entrepreneurs.
While the budget mentioned providing loans up to 100 crore without any mortgage bonds, Jayapal expressed skepticism. He noted that similar schemes announced in the past were not accessible to companies that had already taken loans due to various conditions. He fears that similar conditions might be imposed on this new scheme as well.
The Recycled Textile Federation urges the central government to announce measures that would ensure the availability of raw materials at international prices and provide incentives to boost exports.