Home / Knowledge / News / Textiles / Diesel price hike a shock to Southern India textile sector
Diesel price hike a shock to Southern India textile sector
14
Sep '12
The Indian textile industry, the single largest employment provider, employing over 91 million people particularly the rural masses and women and the backbone of country's economy has been passing through a worst crisis in its history during last two years owing to high volatility in the raw material prices.  

Tamil Nadu is the worst affected State which accounts for over one third of the textile business in the country, directly employing over 50 lakh people, fetching over Rs.50,000 crores forex earnings and accounting for 47% of the yarn production capacity of the country due to added problems like acute power shortage for past four years and high transportation cost.  The State has to procure over 95% of its raw material particularly cotton from States like Gujarat and Maharashtra by spending around Rs.5 per kg as the lorry freight and again spend the same amount to sell it produce in the upcountry particularly the power loom centres in Maharashtra.  

Andhra Pradesh has also joined the wagon for the past one year due to severe power shortage.  The Southern grid corridor bottleneck does not allow the Southern States to mitigate the power crisis taking advantage of the open access power purchase system.  Realizing the grave situation of the textile industry, the Centre announced a financial restructuring package of Rs.35,000 crores 29th May 2012 to avoid further sickness in the textile industry.  
 
In a press release, Mr S Dinakaran, Chairman, The Southern India Mills Association, the largest employers' organization representing the textile industry in the country has stated that the diesel price hike of Rs.5 per litre at one stroke has come as a rude shock to the ailing textile industry.  
 
He has stated that Tamil Nadu textile industry is facing over 50 percent power shortage and once wind season is over the situation would worsen from October onwards.  He added that the State has a generation capacity of only around 7,000 MW as against the peak demand of over 12,500 MW and is relying only on diesel power generation to sustain the survival of the industry in the State.  He has said that the investment in the textile industry has become dormant during the last three years and over 20 lakh people employed in the textile industry lost their jobs owing to power shortage.  
 
 

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search