Seshadri Ramkumar

Texas Tech University, USA

A statement released on July 6 by the Confederation of Indian Textile Industry (CITI) has mentioned that the Indian cotton yarn sector has incurred a huge loss of Rupees 11,000 crores (approximately $2.45 billion USD).
Shishir Jaipuria, Chairman of the CITI in the statement has criticized certain government policies for the ill-health of the Indian cotton yarn sector such as withdrawal of export incentives, taxing the garment industry with excise duty of 10 percent on branded garments and made-ups and irregular policies on cotton yarn exports from India.

Mr. S. P. Oswal, Chairman and Managing Director of Vardhman Textiles, a leading textile conglomerate has been quoted saying that the woes faced by the Indian textile industry are predominantly due to severe fluctuations in cotton prices in the Indian market in the recent months.

CITI Chairman Jaipuria has demanded the Indian government to restore Duty Entitlement Pass Book scheme and duty drawbacks on cotton yarn exports. Additional measure demanded include, restoration of the interest subvention of 4.5 percent on textile and clothing exports.

CITI has also demanded a moratorium of additional two years on the repayment of all loans and interests and the reduction of margin money for purchases of cotton to 10 percent.
Chairman Jaipuria has demanded an immediate relief package from the government for the survival of the Indian textile industry.