In an unprecedented show of unity, key office bearers from major spinning mills associations across India have joined forces to address the dire challenges faced by the sector. Dr. Sundararaman, representing the spinning mills’ associations, has taken the bold step of appealing directly to the Hon’ble Prime Minister, outlining a comprehensive set of measures urgently needed to rescue the industry from its current crisis.
The appeals include a plea for a one-year moratorium on the repayment of principal loan amounts, the conversion of three-year loans under the Emergency Credit Line Guarantee Scheme (ECLGS) into six-year term loans, and a call for necessary financial assistance to relieve stress on working capital, assessed on a case-by-case basis. Importantly, the associations are urging the removal of the 11% import duty on cotton, a move seen as crucial to stabilizing raw material costs.
Dr. Sundararaman has also highlighted critical issues related to Quality Control Orders (QCO), such as exemptions for specific fiber/filament yarns not manufactured in India, relief for raw materials imported through the advance authorization scheme, and reductions in BIS certification and testing charges. These requests aim to streamline production and reduce financial burdens on the struggling spinning sector.
In an extraordinary move, the office bearers have collectively appealed to all State Governments to suspend any incentives for spinning capacity expansion or new investments until the oversupply issue is effectively addressed. This strategic pause is seen as essential to prevent the closure of large-scale spinning mills that have been a cornerstone of the country’s textile industry.
SIMA Chairman, expressing the urgency of the situation, revealed that the office bearers propose a temporary halt in production for one week to sensitize the government and emphasize the immediate need for relief measures. To further mitigate losses, spinning mills across India are advised to cut down production by 35% or one shift, a measure aimed at avoiding distress sales.
Representatives from prominent associations, including The Southern India Mills Association (SIMA), Tamil Nadu Spinning Mills Association (TASMA), South India Spinners Association (SISPA), Indian Spinning Mills Association (ISMA), Recycle Textile Federation (RTF), Rajapalayam Spinners Forum (RSF), Andhra Pradesh Textile Mills Association (APTMA), and Telangana Spinning & Textile Mills Association (TSTMA), participated in a recent high-stakes meeting to discuss these urgent matters.
As the spinning mills unite in this bold and unprecedented move, the ball is now in the government’s court to respond swiftly and decisively to rescue a vital sector that has long been the backbone of India’s textile industry.