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With just a few more days for the Union budget, industries in Coimbatore and Tiruppur districts have submitted their demands to the government.
The Southern India Mills Association has sought allocation of ₹9,000 crore for the Technology Upgradation Fund Scheme. Of this, nearly ₹6000 crore is needed to meet the committed liabilities under earlier versions of the scheme. Since the industry is on path to recovery, necessary fund allocation and speedy disbursal of the subsidy will not only support the industry but will also help the Indian economy to grow at a faster rate, it said.
It also sought working capital for the mills to buy cotton and creation of a National Textiles Fund. This will help meet the financial needs of textile units for infrastructure creation and technology adoption.
Yarn prices surge in India as supplies fail to match demand, inventories dry up
Garment makers in Tiruppur have urged the spinning mills and the Ministry of Textiles to ensure there was no problem in supplying yarn.
Representative image | Source: Unsplash
Yarn prices, mainly those of cotton yarn, have increased sharply in the last few weeks as inventories dried up and supplies have failed to match demand and spinning mills delayed resumption of their operations across the country.
“For example, yarn of 30s count quoted at Rs 175 a kg during the peak of novel Coronavirus pandemic but now quoting around Rs 250,” said Anand Poppat, a Rajkot-based trader of raw cotton, yarn, and spinning waste.