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 Jul 2017

DuPont launches new stretchable electronic inks, films

DuPont Advanced Materials has announced availability of its newest...

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Interviews View All

Poojaa Kumar Deepak
Zeven

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

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Urs Stalder
Sanitized AG

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X