Textile mill associations in India are requesting financial support for the spinning segment, affected by conflicts and import duties. The Confederation of Indian Textile Industry has asked for a moratorium extension and conversion of loans to help cope with a 50-70% drop in capacity utilization.
Rakesh Mehra, CITI chairman, advocated for continued financial assistance on a case-to-case basis to alleviate the challenges faced by the spinning sector. The textile industry had received significant support of Rs 16,920 crore under ECLGS, comprising 6% of the total disbursement as of September 30, 2022, aiding in sustaining market share and achieving export targets.
CITI reports a sharp decline in cotton yarn exports, overall cotton textiles exports, and total textiles and clothing products in 2022-23 compared to the previous year, causing a crisis in the spinning segment.
