COIMBATORE: The Confederation of Indian Textile Industry (CITI) and the Southern India Mills’ Association (SIMA) have demanded the Centre remove the 11% import duty levied on cotton, resolve QCO (Quality Control Order) issues and make raw materials available at international prices.
Besides, they have demanded the state government restrict the maximum charges for electricity demand to 20% or the recorded demand, whichever is higher, for HT textile industrial units.
Addressing the media persons, T Rajkumar, CITI chairman, and Ravi Sam, SIMA chairman, stated that the Indian textiles and clothing industry provides jobs to over 11 crore people, fetching $44 billion in forex and over Rs 25,000 crore GST revenue is facing unprecedented financial stress.
“The impact is an 18% drop in total T&C exports, 50% drop in yarn exports, and a 23% drop in cotton textiles exports, when compared to last year. The high volatility in cotton prices and speculation of trade have made the spinning sector erode huge working capital as cotton prices have crashed from Rs 63,000 per candy of 356 kg in April to Rs 56,000 per candy in July. With the current cotton prices, mills are incurring losses to the tune of Rs 10-20 per kg of yarn,” they said.
Other demands include deferment of fixed charges and exemption from peak hour charges for LT III-B units.