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Rising cost of production worries MP textile sector
May '17
Even as the Madhya Pradesh government is planning to come out with a special policy to boost the garment sector, industry players are worried over the increasing cost of production. Rising costs of electricity and the relatively higher minimum wages in the state are among the factors affecting the competitiveness of the state textile industry.

"Textile industries in the region are reeling under the high pressure of increased labour wages and power costs making their products expensive against rival countries," a leading daily quoted Madhya Pradesh Textiles Mills Association secretary Mahesh Chandra Rawat as saying.

Price variations and poor quality of cotton in the region are also affecting the textile sector in the state, according to industry experts.

Further, textile mills are currently reluctant to buy and stock cotton as they are still unclear about new tax slabs that will come into force from July 1, once the Goods and Services Tax (GST) is rolled out.

In the past six years, about Rs 7,000 crore has been invested in the state’s textile sector, resulting in job creation for 40,000 persons. At the 72nd All India Textile Conference held this year in Bhopal, agreements were signed for setting up of new textile projects in the state involving Rs 4,000 crore investment. (RKS)

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