Stimulus package inadequate for textile sector

Written by Commodities Bureau | Mumbai, Chennai | Updated: Jan 6 2009, 05:56am hrs
The second stimulus package is disappointing the textile sector as it does not contain anything to stimulate the slugging exports in the sector, industry sources say.

Major textiles trade bodies including Texprocil, CMAI, SIMA and TEA have requested the government to have a re-look at the various proposals they have made for relief and announce another stimulus package at the earliest. The slowdown-ridden textile and knitwear industries in south India are totally disappointed with the stimulus packages announced by the Centre as they "are totally inadequate to tide over the current crisis". "Both the stimulus packages are inadequate and negligible for the textile industry when compared with the relief packages offered to the textile manufacturers in the competing countries like China and Pakistan to manage the global recession," K V Srinivasan, chairman, The Southern India Mills' Association (SIMA), said.

The industry has been demanding for a comprehensive relief package to revive the textile industry from the recession and sustain its survival. "The restoration of DEPB rates to pre-November 2008 levels does not benefit the exporters of cotton textile products but would only benefit a few items," Siddhartha Rajagopal, executive director of the cotton textiles export promotion council (Texprocil), said.

"The garment industry continues to face the grim reality of continued loss of over Rs 12,000 crore per month due to compelled cut in production caused by the unending woes of slowdown of the local and global markets, uncompetitive production costs, rising input costs, poor high cost power and unrelenting neglect by the government even in the second stimulus package," said Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI).