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Textile sector fails to sustain production
Feb '08
Spinning units in and around Coimbatore, Tamil Nadu, are facing serious crisis, resulting in a negative influence on coarse yarn production and its export market.

Manufacturing looms are coming to a standstill because of insufficient availability of required yarns. Besides, sky touching prices of short staple and waste cotton, in spite of a highest ever production of 310 lakh bales of cotton, is also impeding the production process of various mills across the state.

Endeavors are taken by spinners, weavers, traders, exporters and all the other related enterprises, to unite for a fight against unbearable adversities. They have collaborated to demand for relief measures like waiver of import duty on short staple cotton, exemption from special additional duty of 4 percent, and exemption from CST and VAT.

Moreover, long term plans like broad basing cultivation of short staple cotton, regulation of exports and liberalizing imports also needs to be taken into consideration.

What makes the situation grow worse is the fact that yarns demanded by the manufacturers are not available in the market even at a high price because spinners cannot afford to produce them.

Increase in the prices of materials used for spinning coarse yarn has given even the best mill in the state a run for its life.

While comber noil prices have risen by over 40 percent to reach Rs52 a kilogram, the flat strips price has gone up by over 55 percent to stand at Rs50. On the other hand yarn prices have gone up only marginally ranging from 5 to 9 perecnt and high import duty of 10 and special additional duty (SAD) of 4 percent have made cotton import uneconomical.

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