Home / Knowledge / News / Textiles / TSTMA seeks Central Govt help to tide over crisis
TSTMA seeks Central Govt help to tide over crisis
06
Oct '15
The Telangana Spinning & textile Mills Association (TSTMA) has sought a two-year moratorium on term loans and conversion of working capital into working capital term loan with the repayment period between three to five years. It has also sought the reduction of interest rates for textile mills on term loans to bank base rates, according to media reports.

In a representation made to Textile Minister Santosh Kumar Gangwar, the association said any delay in addressing the problems of textile mills would make several hundreds of textile units in the country economically unviable resulting in large scale NPAs in the textile industry. It has asked the government to address its concerns on a priority basis to ensure that active mills are not forced to close down due to adverse external factors.

TSTMA General Secretary, M. Anantha Reddy in a statement said the cotton mills and spinning and weaving sectors of the textile industry have been suffering for the last 18 months due to glut in the export market caused due to policy changes in China and the duty structure in EU, China and the Americas.

Prices of finished goods, cotton and synthetic yarns have been on continuous decline over last 18 months and have reduced by more than 30 per cent and have completely eroded the margins of Industry. Most of textile units are suffering huge losses between 15-20 per cent of turnover and are under severe strain.

The association wanted a cotton price stabilisation fund scheme consisting of cotton working capital loan at 7 per cent interest rate (or 5 per cent interest subvention), reduce margin money from 25 per cent to 10 per cent and increasing the credit limit from three months to nine months. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 26th Jun 2017

US initiates probe into PSF imported from 5 nations

The department of commerce of the US has initiated investigations for ...

Textiles | On 26th Jun 2017

USTR announces AGOA review for Rwanda, Tanzania & Uganda

The office of the US trade representative (USTR) has announced the...

Textiles | On 26th Jun 2017

Braskem invests in polypropylene production facility in US

The Board of Directors of Braskem, one of the largest producer of...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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:
June 2017

June 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