SIMA Chairman Calls for Faster Automation and Value Addition in Textile Industry

Durai Palanisamy outlines policy measures and seeks further action on cotton price volatility and import duty

The Indian textile industry is entering a phase in which diversification, technology adoption, sustainability and value addition are expected to play a greater role in global competitiveness, according to Durai Palanisamy, Chairman of The Southern India Mills’ Association (SIMA).

Palanisamy said India's traditional strength in natural fibres, particularly cotton, needs to be complemented by a stronger presence across man-made fibres (MMF), technical textiles, recycled fibres, sustainable products and value-added textiles. He also highlighted automation, productivity and advanced technology as areas for the industry to focus on as India seeks to benefit from opportunities arising from Free Trade Agreements.

In a press release, Palanisamy expressed gratitude to the NDA Government for what he described as its priority for the textile industry and listed several policy measures, including GST rationalisation across the textile value chain, withdrawal of Quality Control Orders (QCOs) on cotton, MMF fibres, filaments and yarns, and revisions to the Production Linked Incentive (PLI) Scheme.

Policy Measures Highlighted by SIMA

The measures listed by SIMA include:

Rationalisation of GST across the textile value chain.
Withdrawal of QCOs on cotton, MMF fibres, filaments and yarns.
Retention of the annual banking system and reduction of related charges in relation to power.
Extension of the export obligation period under Advance Authorisation.
Launch of the Mission for Cotton Productivity.
Revisions to the PLI Scheme, including lower investment and turnover thresholds.
Progress on FTAs with the EU, UK, New Zealand, Oman and other countries.
Export credit support, RoDTEP restoration and extension of RoSCTL.
Temporary exemption of cotton from 11% import duty.
Rollback of the U.S. tariff from 50% to 18%.
Reduction of Hank Yarn Obligation from 30% to 20%.
Rejection of anti-dumping duty recommendations on elastomeric filament yarn.
Introduction of ECLGS 5.0 to address liquidity constraints, providing fully collateral-free additional credit of up to 20% of peak working capital, subject to a maximum of Rs 100 Cr per borrower, with a tenure of up to five years till 31st March 2027 and a one-year moratorium on principal loan repayment.
Withdrawal of the proposed 3.48% power tariff increase in Tamil Nadu.

SIMA Seeks Action on Cotton Price Volatility

Palanisamy also urged the Government to address volatility in cotton prices, which he said accounts for around 65–70% of yarn manufacturing cost.

He said curbing speculation in raw material prices is important for the textile value chain and proposed two policy interventions.

First, SIMA called for the permanent removal of the 11% import duty on all varieties of cotton with immediate effect, citing the need to address import-parity pricing.

Second, the association suggested that the Government consider changing the role of the Cotton Corporation of India (CCI) along the lines of the China National Cotton Reserves Corporation, which maintains more than a year of stock and seeks to maintain stability in cotton prices.

The temporary exemption from the 11% cotton import duty has previously been reported as effective from 1 June to 31 October 2026.

SIMA Re-elects Office-bearers for 2026–27

The 67th Annual General Meeting of The Southern India Mills’ Association (SIMA) was held at the SIMA premises in Coimbatore on 22nd September 2026. Mr. Durai Palanisamy, Executive Director, Pallava Textiles P Limited, Erode, was unanimously re-elected as Chairman for 2026–27.

Palanisamy holds an MBA in International Business from Southern New Hampshire University and a Bachelor of Technology in Textile Technology from PSG College of Technology. He is the Vice-President of CII, Erode Zone and serves on the Committee of Administration of the Manmade and Technical Textiles Export Promotion Council (MATEXIL).

Mr. S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills P Ltd., Tiruppur, was unanimously re-elected as Deputy Chairman for 2026–27. He holds a B.A. in Psychology from P.S.G. Arts College, Coimbatore, and entered the business in the late 80s.

His company focuses on sustainable fashion and converts used PET bottles into recycled yarns and fabrics. He also heads the newly formed Tirupur Yarn Manufacturers Association.

Mr. K. Sivaraj, Managing Director, Sivaraj Spinning Mills (P) Ltd., Dindigul, was unanimously re-elected as Vice-Chairman for 2026–27. He holds a B.Tech. in Textiles from USA and entered the business in the late 90s.

Sivaraj Spinning Mills operates across four product segments — yarn, woven fabric, knitted fabric and readymade garments — while focusing on transforming traditional manufacturing into modern retail branding.