Textile woes: outside agency to conduct study

Textile associations across the country have decided to engage an outside agency to conduct a study of the ailing sector and present the same to the Government.

Industry sources told BusinessLine that they have started the search of assigning the job to an agency. “One of them, which is already doing some work for us, is likely to submit a proposal soon,”a top official of the Southern India Mills Association (SIMA) said, adding “but that (the study) could take three months.”

Meanwhile the various textile associations have decided to come under one umbrella to make their representation to the government.

“We are seeking a level playing field,” asserted SIMA Chairman T Rajkumar.

He said the industry expectsthe government to announce the allocation of ₹300 crore towards TUF very soon. “This would give some respite. The market is also improving as it normally does during this time of the year with the festive season round the corner.”

The SIMA chief stressed the need for reduction in the import duty onfibre and interest cost, among others.

On issues such as delay in GST rollout, he said “this is again a worry. But until such time, the State government should considerreducing VAT and remove the market cess. We are seeking a “Textile Value Addition Policy”.

“State governments should no longer encourage additional spindleage as there is excess capacity. But it looks like there could be an addition of 3 to 4 lakh spindles next year. We should strengthen the weak link in the textile chain such as processing and weaving,” he said.

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