Economy

Spinning mills association against diesel price hike

PTI Coimbatore | Updated on March 12, 2018

Diesel price hike would have an additional implication of Rs four to Rs 17 per kg in the cost of production of yarn, causing unrest in handloom and powerloom segments of textile industry, Southern India Spinning Mills Association (SIMA) said today.

Reacting to the increase in diesel prices by Rs 5 a litre price, SIMA Chairman S. Dinakaran said in a release that besides diesel power generation costs, there would also be a substantial increase in indirect costs like transportation.

He said the escalation in costs would have serious cascading effect down the value chain in the textile industry.

Tamil Nadu accounts for one-third of textile business in the country giving direct employment to 50 lakh people, fetching Rs 50,000 crore forex earnings and accounting for 47 per cent of yarn production.

The state has to procure over 95 per cent of its raw materials, particularly cotton, from states like Gujarat and Maharashtra.

Over six million handloom and power loom weavers across the country were suffering due to the abnormal cost of inputs in the last three years and the price hike would lead to unrest in the sectors, he cautioned.

SIMA also demanded immediate roll back of the hike to protect the industry and the people who depend on it.



Published on September 15, 2012

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