Numerous organisations advocating for the Indian spinning industry implored the government for financial assistance to help mitigate struggles in the sector. Spinning mills are feeling the effects of global conflicts, quality control order issues, and high import duties on cotton.
The Confederation of Indian Textile Industry asked the central government to grant relief to businesses which have availed loans under the Emergency Credit Line Guarantee Scheme, ET Bureau reported. CITI asked the government to extend its one-year moratorium for the repayment of the principal amount of the loan and for the conversion of three year loans into six year loans to reduce payments.
According to CITI, many Indian spinning mills have experienced between a 50% and 70% drop in their capacity utilisation due to global and economic factors. Aid for the sector would help to prevent several lakh job losses and put the industry on the right path to achieving its export targets, according to CITI.
India’s spinning industry experienced a 50% year-on-year drop in cotton yarn exports and a 23% decrease in cotton yarn exports in the 2023 financial year, according to CITI. Keen to turn this trend around, the traders’ body aims to secure government relief swiftly.
Copyright © 2024 FashionNetwork.com All rights reserved.