Related Keywords: China, Combed cotton yarn, cotton yarn demand drop, Indian cotton yarn producer, Indian textile industry, largest importer, Southern India Mills Association, TUFS
Indian cotton yarn producers facing a tough time as the demand for cotton yarn from China, the largest importer of Indian yarn has slowed down since April due to which exports have dropped and subsidies under technology upgradation fund scheme (TUFS) have been overdue for the past few months.
Mills have also not received interest subsidies under TUFS since December. For investments to the tune of Rs 65,000 crore made by over 1,000 units since 2010, interest subsidy of around Rs 3,000 crore is pending. This has put further pressure on the working capital of the mills
