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New textile minister has plentiful of challenges
15
Jul '11
The first priority of the newly appointed Minister of Textiles; Mr Anand Sharma will be to address the issue of reopening of the closed dyeing and printing units in Tirupur, the textile cluster in South India.

In order to do so, he has proposed setting up a working group to look in to the challenges of reopening the units in a time-bound manner.

It may be recalled that the Madras High Court had ordered closure of around 1,000 textile units in January 2011, on a petition filed by farmers that these units were polluting the Noyal river.

The whole value chain of the Indian textile industry has been severely impacted by the closure of these units, mainly the spinning and powerloom units, due to poor off take of yarns and fabrics, resulting from the closure of the Tirupur units.

Meanwhile, around 600 spinning mills, affiliated to South India Spinners Association (SISPA) stopped yarn production starting today, in order to liquidate high inventory levels piling up since the last few months.

Mr Sharma may also have to address the clamour from the cotton growers, ginners and traders to permit additional export of cotton bales over and above the one million bales recently allowed by the government.

However, the cotton spinners are stiffly opposing the proposal.

The Indian textile industry has also demanded restoration of duty-drawback on cotton yarn, which was withdrawn last year, under which exporters were getting a four percent reimbursement.

Fibre2fashion News Desk - India

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