Interviews
If policy space used judiciously, sector can re-employ 1 mn workers
06 Feb '09
6 min read
10)Broad base MDA scheme and provide sufficient funds.
In order to address the problems created in the cotton economy by unreasonably high MSPs, implement the following steps:
-All procured cotton should be disposed of immediately to domestic mills at international prices.
-Working capital for cotton should be allowed liberally at 7 percent interest, as applicable to agriculture sector.
-Margin money for such working capital should be reduced from the current 25 percent to 10 percent
-The period of the working capital loans should be extended to 9 months as against the current 3-4 months.
If a package as above is implemented immediately for a period of two years, the current job losses can be arrested, another 2.5 million additional jobs can be created, huge investments, including Rs.1 trillion invested during the last three years, can be saved and T&C exports can be steered back to sustainable growth.
In order to address the problems created in the cotton economy by unreasonably high MSPs, implement the following steps:
-All procured cotton should be disposed of immediately to domestic mills at international prices.
-Working capital for cotton should be allowed liberally at 7 percent interest, as applicable to agriculture sector.
-Margin money for such working capital should be reduced from the current 25 percent to 10 percent
-The period of the working capital loans should be extended to 9 months as against the current 3-4 months.
If a package as above is implemented immediately for a period of two years, the current job losses can be arrested, another 2.5 million additional jobs can be created, huge investments, including Rs.1 trillion invested during the last three years, can be saved and T&C exports can be steered back to sustainable growth.
Confedration of Indian Textile Industry
Popular News
Leave your Comments
Yohan Lawrence
Joint Apparel Association Forum (JAAFSL)
Ashish Saraf
Technocraft Industries (I) Ltd
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
