The Hindu Business Line : Powerloom sector lists out export woes

Coimbatore, Nov. 18 The dent in value realisation suffered by powerloom textile exporters on account of the rupee’s appreciation has hit production in powerloom-based textile industry, according to Mr M.S. Mathivanan, Chairman of the Powerloom Development and Export Promotion Council (PDEXCIL).

Mr Mathivanan said the value loss had led many units to reduce work and cut down shifts. The reduced production and the consequent reduction of manpower would further strain the industry. These issues had been brought before the Union Finance Minister, Mr P. Chidambaram, who had recently called a meeting of textile exporters and heads of the textile export promotion councils.

Besides the powerloom textile exporters, a large number of job working powerloom units were also hit due to curtailment of manufacturing, thereby endangering the employment of millions.

Mr Mathivanan said that while the reintroduction of the technology upgradation fund scheme was appreciated, there was need to step up the pace of modernisation as only 1.6 per cent of powerloom industry was modernised. More schemes were needed to achieve a higher rate of modernisation. The absence of training, especially for newer technology, in the weaving industry was another area of concern, he said.

The PDEXCIL Chairman also pleaded for restoration of income-tax benefit under Section 80 HHC of I-T Act for textile exporters. The Finance Minister had assured them that he would initiate necessary action to ameliorate the sufferings of industry, he added.

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