The textile industry in the Tamil Nadu state that is already in a disadvantageous position as the spinning sector spends around Rs. 6 per kg to procure the raw material from upcountry markets, and another Rs. 4 per kg to sell the yarn in those markets, while other states enjoy huge incentives.

The present hike in VAT have considerable impact on the transport cost of all items as the textile clusters of different value segments are located in different places, and with the mill sector using diesel generators to tide over load shedding and tripping, it could increase the power cost as well.

The Southern India Mills Association (SIMA), an apex body of textile mills has appealed to the government, to withdraw the hike in VAT on petrol and diesel.

SIMA Chairman, M .Senthilkumar in a communication to the Chief Minister, termed the hike as unwarranted considering that the Centre has announced implementing the GST from July 1.

Further, this would not only impact the textile industry but also the common man