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Textile owners urge PLN to defer electricity price hike
Jan '11
Indonesia's textile industry has urged the state electricity company PT PLN to defer its plan of lifting the restrictions imposed on raising the electricity charges by at least six months so that they can get ready to bear the high prices.

The industry has already been hit by the continuously rising prices of raw materials and import duties, the Indonesian Textile Association (API) said. A hike in the electricity rates would make it impossible for them to survive in business, it added.

The Association stated that, the period from November 2010 to January 2011 was a gloomy phase for them, as the prices of cotton fibre were on a rise during the last quarter of 2010, and after that there was a surge in the polyester and rayon prices. If the electricity charges are raised during this month, the textile millers would have to incur an extra cost of around 18 to 22 percent.

Further the Association even claimed that, if the PNL is permitted to raise the electricity charges for industries by between two to 22 percent, this would render the country's textile products less competitive as compared to products of countries like China and Vietnam, which have the benefit of duty free imports of raw materials and machines.

Fibre2fashion News Desk - India

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