The South India Spinners Association (SISA) has urged the Central government to implement two crucial measures to ensure the survival of small-scale textile mills in the region.
In a recent press release, SISA highlighted the dire situation faced by the Tamil Nadu textile industry over the past two fiscal years. The industry has witnessed widespread mill closures, job losses, and dwindling export opportunities. The primary culprit behind this crisis has been the exorbitant cost of raw materials, primarily cotton and man-made fibres.
The association emphasised that the lack of timely policy support from the government has further exacerbated the industry’s woes. The spiralling costs have rendered it nearly impossible for mills to maintain production levels, and limited access to finance has compounded the problem. Banks have become increasingly reluctant to extend credit to an ailing industry.
To address these pressing issues, SISA has proposed two key solutions:
- Removal of Import Duty on Cotton: By eliminating import duties on cotton, the government can help reduce the cost of raw materials for domestic mills, making them more competitive in both domestic and international markets.
- Access to Credit at Reasonable Rates: The government should facilitate access to credit at affordable interest rates for micro and small-scale textile mills. This will enable these mills to invest in technology, upgrade their operations, and sustain their businesses.
SISA believes that these two measures are essential to bolster the resilience of the textile industry and safeguard the livelihoods of countless workers. The government’s timely intervention is crucial to prevent further deterioration of the sector and ensure its long-term sustainability.
