Home / Knowledge / News / Textiles / SIMA appeals for export benefits for cotton yarn
SIMA appeals for export benefits for cotton yarn
24
Feb '16
The Southern India Mills' Association (SIMA) has appealed to the Union Government for export benefits for cotton yarn, expediting a Free Trade Agreement (FTA) with the EU and debt restructuring facility for SMEs to save the textile industry's spinning sector in the face of falling cotton yarn exports.

According to a SIMA press release, the appeal was made in a memorandum submitted to Commerce Minister Nirmala Sitharaman recently.

SIMA Chairman M Senthilkumar said the spinning sector has been under severe financial stress since April 2014 due to the drastic fall in cotton yarn exports that have plunged from over 140 million kgs at the beginning of 2014 to the current level of around 100 million kgs largely because of decreasing demand from China. He said MEIS benefits are essential to meet the additional transport cost of exporting to other countries, and that the 3 per cent export incentive extended for other textile exports also should be extended for cotton yarn to revive export performance.

Sentilkumkar also reiterated SIMA's demand for expediting the FTA with the EU to enable the Indian textile industry to achieve its targeted growth rate. The SIMA chief pointed out that Indian textile goods attract 4 to 16 per cent duty in EU while the majority of the competitors like Vietnam, Cambodia, Bangladesh, Pakistan, Turkey and Sri Lanka enjoy zero duty access in EU. He said that the EU accounts for over 40 per cent of Indian textile exports and therefore, it is essential to conclude FTA on a war footing.

Senthilkumar said the textile industry in general and spinning sector in particular, has been going through a bad patch and in the absence of profits, several hundreds of spinning mills are finding it difficult to service their debts. He has stated that large scale units have the facility of corporate debt restructuring that gives them breathing space once lenders are convinced of the viability of the units. But such facility was not available for SMEs and with the revised NPA norms both the banks and spinning sector are facing huge problems.

The SIMA Chairman appealed to the Centre to introduce a debt restructuring scheme specifically for textile SMEs considering the higher vulnerability.

Senthilkumar claimed that Sitharaman has assured that she would consider all the three pleas favourably and take necessary steps, the release said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Thrace-LINQ expanding Dorchester County operations

Thrace-LINQ, a global supplier of fabrics for the textile industry,...

Courtesy: Levis

Fashion | On 26th Sep 2017

Google unveils smart denim jacket with Levi Strauss

Ending the months-long wait, Google has unveiled its smart denim...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
75.5%
No
12.2%
Skip
12.2%

Total Votes: 49

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

Yes No

Active Poll

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

Yes
63.3%
No
24.5%
Skip
12.2%

Total Votes: 49

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

Yes No

Active Poll

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

Yes
87.8%
No
6.1%
Skip
6.1%

Total Votes: 49

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

Active Poll

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

Yes
71.4%
No
10.2%
Skip
18.4%

Total Votes: 49


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