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Related Keywords: cotton cone yarn, cotton prices starting soaring, domestic cotton prices, help industry tide over current crisis, long-term and short-term measures, raising prices of hosiery yarn, reduce VAT, reducing production, SIMA, taking desperate measures, Textile mills in the Manchester of South India, unlikely to come down until next season

Textile mills in the Manchester of South India are taking desperate measures like reducing production and raising prices of hosiery yarn as the cotton prices that starting soaring in October are unlikely to come down until the next season according to India Ratings and Research. As a result, textile mills in the state, which account for 46% of the spinning capacity in the country, preferred to bring down production by 15% to 20%, to at least cut their losses.

Related Keywords: clear pending dues pending under TUF scheme, expedite trade agreements with China, improve textile industry competitiveness, phase of recession, reduce excise duty on MMF, reduce VAT, seeks interim package, Southern India Mills’ Association, spinning mills in the state, Value Added Tax exemption

Southern India Mills’ Association to support the textile industry, especially the spinning mills is the State which is going through a phase of recession has appealed to the Chief Minister to take up with the Union Government the need for an interim package that will improve the industry’s competitiveness.

T. Rajkumar, chairman of the association said that an interim package will provide subsidy for export of textile products, enabling the industry increase its exports.