‘Industry cut back production owing to excess stock of yarn in 2010-11'
The Karnataka Textile Mills' Association (KTMA) has sought a bailout package for spinning mills so that the loans they owe to banks “do not turn non-performing”. Addressing the 43rd annual meeting of the KTMA, chairman C. Valliappa said the previous financial year was topsy-turvy for the cotton spinning industry. While the industry made “record profits” for some time, it had to cut back production later by 30 per cent owing to excess stocks of yarn.
Mr. Valliappa said the Union Budget had offered some support to the industry by way of incentives to enable skill development. He urged the State government to extend the cut in tax rate on unginned cotton to ginned cotton too. He also welcomed the allocation of Rs. 60 crore for a package for weavers that should be implemented by the Textiles Department.
Mr. Valliappa observed that although Karnataka was an important centre for garment manufacturing, there were few weaving or processing facilities in the State, mainly because of the fear of pollution. He suggested that a processing centre be established in coastal Karnataka, which would enable “marine discharge”. This, he said, “would be a lasting solution” to the problems faced by the industry.