KARUR: The textile industry is bracing itself for a determined struggle to overcome the problems that plague the units.
In an initiative to stem the downslide caused by uncertain yarn rates and competitive international prices for finished products, a committee of industry leaders has been formed to guide the units and highlight their needs.
Stakeholders from various parts of the State met on Wednesday and came out with formulations to pull the industry out of the wood. Resolutions adopted at the meeting sought the Central and State Governments’ intervention to help the industry get a fresh lease of life.
The committee will interact with the government and other stakeholders. Its members include Karur Textile Forum president M. Sivakkannan, Madurai Exporters’ Association president Selvaraj, Erode Textile Cloth Manufacturers’ Association president Nataraja Mudaliar, Tamil Nadu Yarn Association secretary M. Lakshmanan, Madurai Handloom Weavers’ Association president Pitchai Raman, Nagercoil Handloom Weavers’ Association president Raghunathan, Karur CETP, ETP Federation president Ramasamy and the Tamil Nadu Spinners’ Association adviser K. Venkatachalam of Dindigul. They will coordinate the activities of textile associations to forge a united front. The committee, in consultation with the units, will decide on the appropriate course of action the units should take to reverse the downswing.
Mr. Sivakkannan said the recent budget held out little for the textile industry, even as the government waived Rs. 60,000 crore worth of farm loans. The main issue, according to him, was the export of waste cotton that remained the major raw material. During 2005-06, waste cotton exports amounted to Rs. 65.7 crore, but in 2006-07, they had risen to Rs.138 crore. It was logical, Mr. Sivakkannan argued, to export raw material after considering the requirements of local traders and manufacturers. But the needs of textile units were overlooked, and they had to grapple with raw material shortage.