Spinning sector is to make up for slow pace exports, says CITI
Textile mill associations asked for financial assistance for India’s spinning sector, which has been harmed by the ongoing Ukraine-Russia crisis, the current Israel-Hamas war, an 11 per cent import levy on cotton, and challenges connected to Quality Control Orders on man-made fibre.
The Confederation of Indian Textile Industry (CITI) requested that the one-year moratorium on principal repayment be extended, and that three-year loans under the Emergency Credit Line Guarantee Scheme (ECLGS) be converted into six-year term loans.
Rakesh Mehra, chairman of CITI, also advocated for the extension of “necessary funding to alleviate the strain on working capital, on a case-by-case basis” to eliminate the unforeseen crisis afflicting the textile sector, prevent job losses of several lakh people, maintain market share, and meet the anticipated export targets.
Under the ECLGS, the textile industry got essential support of Rs. 16,920 crore, accounting for nearly 6 per cent of the overall payout of Rs. 2.82 lakh crore as of 30th September 2022.
As per CITI, the spinning segment is presently in a serious crisis, with a 50 per cent loss in the value of cotton yarn exports of goods, a 23 per cent drop in overall cotton textile exports, and an 18 per cent drop in total textiles and apparel items for the fiscal year 2022-23 compared to 2021-2022.
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