Slack demand attributes to shortfall in export targets
Shri Shankar Sinh Vaghela
On the back of recession, consumer demand in the US and EU, two major markets for Indian textile exports, has been witnessing a down trend.
While speaking to media persons, Textiles Minister Shankar Sinh Vaghela said that recession in US and European markets has slackened demand and exports, which grew at 11.5 percent in the first four months, may go negative. However, this cannot be controlled and this slowdown will have negative impact on the textile sector.
Mr Vaghela further said that a stimulus package for the textile industry is in the offing which includes loan waiver of Rs26 billion for handloom cooperatives and concessional interest at the rate of 7 percent.
This year production of cotton has increased substantially and it is expected to touch a record level of 32.20 million bales this fiscal. In order to rescue farmers from further troubles, the minimum support price of cotton has been increased by record 39 percent to 45 percent during the cotton season of 2008-09.
“The textile industry has proposal of 40 textile parks, of which four are inaugurated and eight will be inaugurated by March next year," Mr Vaghela stated.
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