Southern India’s spinning mills request government assistance amid slowdown

The Southern India Mills Association, representing spinning mills in Telangana, Tamil Nadu, and Andhra Pradesh has appealed to both central and state governments for assistance as costs rise and demand slows due to inflationary pressures and global conflict. 

“The 11% import duty levied on cotton and the expensive man-made fibre and filament yarns added fuel to the situation and drastically reduced the exports of yarns, fabrics, garments, and made-ups,” announced the Southern India Mills Association, ET Bureau reported. “The steep increase in the power cost ranging from Rs 1 per unit up to Rs 2.5 per unit greatly affected not only the global competitiveness but also in the domestic market when compared to Maharashtra, Gujarat, and Madhya Pradesh that offer huge incentives under the new state textile policies.” 
 
Demand has also dropped at spinning mills across India due to global factors such as numerous wars, according to the Southern India Mills Association. The organisation has partnered with a number of spinning mill and open-end spinning mill associations to appeal to chief ministers in Telangana, Tamil Nadu, and Andhra Pradesh to roll back the tariff on power.

The Southern India Mills Association has reported an increase in imports of numerous textiles into India which it believes is also harming demand for domestic production, the Economic Times reported. Materials including cotton fibres and yarns, polyester yarns and fabrics, made-ups, ready made garments, and viscose yarns have all seen imports rise in double digits. The organisation has also asked for assistance repaying loans due to financial strains.