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Spinning units halt yarn production in South India
15 Jul '11
1 min read
In view of the plenty of stocks piled up during the past three months, about 600 spinning units associated with the South India Spinners Association (SISPA) have halted yarn production, initially for a 10-day period.
This step will enable the spinners to liquidate their huge stocks and help save the sector from the ongoing crisis, brought about by the Government's mismatching policy, said SV Devarajan, President of SISPA.
The SISPA President urged the Government to immediately intervene and restore the incentives earlier granted for yarn exports, like the Duty Entitlement Pass Book and Duty Draw Back schemes. He also asked the Government to regulate export of cotton by maintaining adequate buffer stock.
Some other demands put forward by the SISPA are a year's moratorium on repayment of interest and loans, conversion of the eroded working capital into long-term loans at low interest rate, withdrawal of 10.3 percent export duty on branded apparels, and reduction of bank interest rate from 15.75 percent to 10 percent.
This step will enable the spinners to liquidate their huge stocks and help save the sector from the ongoing crisis, brought about by the Government's mismatching policy, said SV Devarajan, President of SISPA.
The SISPA President urged the Government to immediately intervene and restore the incentives earlier granted for yarn exports, like the Duty Entitlement Pass Book and Duty Draw Back schemes. He also asked the Government to regulate export of cotton by maintaining adequate buffer stock.
Some other demands put forward by the SISPA are a year's moratorium on repayment of interest and loans, conversion of the eroded working capital into long-term loans at low interest rate, withdrawal of 10.3 percent export duty on branded apparels, and reduction of bank interest rate from 15.75 percent to 10 percent.
Fibre2fashion News Desk - India
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