Textile mills worst hit
The textile mills in Tamil Nadu are likely to cut down production by 20-25 per cent, as the sector is reeling under a crisis, according to the Southern India Mills’ Association.The industry in the State was facing severe recession and the situation was turning bad to worse. The competitiveness of the sector started dwindling since the beginning of 2007 with appreciation of the Indian rupee against the dollar, high interest cost, sluggish market and high cotton prices.The sector was the “worst hit” in Tamil Nadu because of “unprecedented power shutdowns and tripping,” which were likely to go up to 25 per cent in summer. High transportation costs and shortage of workers added to the problems here.
“The textile industry would be forced to cut down its production to the tune of 20 to 25 per cent or some of the units would be closed down thus throwing lakhs of workers out of jobs in the current scenario.” Some of the units had already curtailed production by 20 per cent and others might also do so soon. Many units were now available for conversion work or for sales and several new products, expansion and modernisations plans had been shelved. The textile industry in the country enjoyed the benefits of bumper cotton crop since 2003. However, the advantage of home-grown cotton was not available for the 2007-2008 season, as the cotton prices were 20 per cent more than that of last year. Huge volume of quality cotton was getting exported and the domestic prices were expected to remain firm throughout the season.
