Tamil Nadu textiles manufacturers seek govt aid to enhance competitiveness

A significant decline in orders from Western countries has impacted at least 35 per cent of spinning mills and fabric manufacturers in Coimbatore and Tiruppur. Despite the fall in cotton candy prices from Rs 1.10 lakh in 2021-22 to Rs 57,000-60,000, the industry struggles to compete with Bangladesh, China, and Vietnam due to an 11 per cent import duty on cotton and quality control orders on certain fibres. Industry associations have appealed to the union government for support.

K Selvaraju, Secretary General, The Southern India Mills’ Association (SIMA), highlighted mills cannot benefit from lower cotton prices due to cheaper imports of cotton and synthetic fabrics from Bangladesh, which are 15 per cent and 8 per cent -15 per cent cheaper, respectively. He urged the government to remove the import duty to enhance global competitiveness.

S Jagadesh Chandran, Secretary of the South Indian Spinners Association (SISPA), noted that 25 per cent of the 2,000 spinning mills in Tamil Nadu have ceased operations, with high EB tariffs and labor costs exacerbating the situation.

Prabhu Dhamodharan, convener of the Indian Texpreneurs Federation (ITF), acknowledged some recovery in orders but emphasized the need for competitiveness and diversification. He expressed optimism about gaining domestic market share after new duties on Chinese imports take effect in July, and called for government measures to leverage the China plus one strategy.