The issue of improvement of textile industry was recently addressed by the Southern India Mills’ Association. The Association has appealed to the Chief Minister of Tamil Nadu to take up with the Union government the need for support to the textile industry with an interim package. This will improve competitiveness. T Rajkumar, Chairman of the Association said that the textile industry, especially the spinning mills, in the state is going through recession. An interim package, that provides subsidy for export of textile products, will enable them to increase exports.

In the last 15 years, Tamil Nadu attracted over Rs 1.5 lakh crores investment and is the only State that has the entire textile value chain— from spinning to garment making. They comprises almost one-third of the size of Indian textile industry.

Competitiveness of the industry though, has been affected because of several reasons, such as import and export tariff barriers, pending release of subsidies under the Technology Upgradation Fund Scheme, import of manmade fibre and yarn, etc. The industry has made an appeal to the State government to reduce VAT on cone yarn to two per cent from five per cent, to exempt cotton and cotton waste from market cess, and draft a textile policy focusing on value addition. The government is already mulling over this appeal.

The Association wants Rs 6,500 crores allocation to clear dues pending under the Technology Upgradation Fund Scheme, expedite trade agreements with China and other countries, provide an interim package with subsidies for the textile industry, and reduce the excise duty on manmade fibre.