I HAVE seen various articles about the textile industry and would like to clarify some wrong impressions with reference to the “spinning sector”.
First of all, spinning sector has not been given any financial concessions in recent years. On the contrary, it is even excluded from the “export re-finance scheme”. Nor any benefit whatsoever has been given to the sector in the recent packages, although a major portion of the investment comes from this sector.
Spinners and other textile manufacturers were lured into upgrading their manufacturing facilities at a mark-up at 5-6 per cent. They are now paying over 14 per cent.
The increase in yarn prices is due to the rise in cost of inputs which includes cotton, gas, electricity and above all, the steep rise in mark-up rates.
It is not fair to say that yarn exports are rising at the cost of higher priced textiles. “Spinners” have to compete in a market where the competitors enjoy concessions from their governments.
In spite of whatever little benefits are being given to the “higher priced textiles”, we are witnessing their demise – beginning with the “knitting sector”.
Let us not blame each other for the crisis and sit together to find a solution in the present global scenario. Every attempt of the government to help the industry should not be termed as a “bailout”. The government needs to re-focus on the textile industry as a whole.
It should be kept in mind that this industry cannot always be the revenue-generator but should be viewed in a larger perspective as an employment- generator. Can anyone envisage the scenario – if God forbid this Industry moves towards gradual demise?
I HAVE seen various articles about the textile industry and would like to clarify some wrong impressions with reference to the “spinning sector”.
