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 29th Jun 2017

Amazon intends to keep investing and growing in India

American online retail giant Amazon intends to keep investing and...

Textiles | On 29th Jun 2017

Vietnam’s textile & garment exports cross $10bn till May

Vietnam earned $10... billion from textile and garment exports in the ...

Textiles | On 29th Jun 2017

Indian textile industry will reach new milestone by 2020

By 2020, textile technologies will be highly advanced not only with...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


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



X