Industry

COVID-19 | Synthetic textile industry seeks special relief package

The immediate requirement is to allow the manufacturing facilities to function with at least 50% capacity and gradually lift the restrictions. | File

The immediate requirement is to allow the manufacturing facilities to function with at least 50% capacity and gradually lift the restrictions. | File   | Photo Credit: G. Karthikeyan

The industry has incurred huge losses and fund shortage due to the cancellation and deferred orders: Synthetic and Rayon Textile Export Promotion Council

The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) representing the man-made fibre textile segment has approached the government for a relief package to ensure business continuity post COVID-19 phase.

“Man-made fibre textile segment is one of the worst hit in this pandemic. The industry has incurred huge losses and fund shortage due to the cancellation and deferred orders, which has put the industry on ventilators,” said Ronak Rughani, chairman, SRTEPC.

Also read | Centre seeks suggestions to revive textile industry

SRTEPC has submitted a memorandum to the government seeking aid and relief.

It has asked the government to announce a special corona relief package for the textile industry including entire value chain of the manmade fibre textile segment to tide over the prevailing coronavirus crisis.

These include special export incentive of 3% on fibre and yarn, 4% on fabric, 5% on made-ups for at least six months or till the impact of coronavirus subsides and global markets stabilise, a separate package for manmade fibre textiles industry as this segment has been reeling under the inverted duty structure under GST.

Also read | Punjab’s textile industry hit by slowdown, lockdown

Welcoming the various suggestions of SRTEPC, Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India Ltd said, “The immediate requirement is to allow the manufacturing facilities to function with at least 50% capacity and gradually lift the restrictions, create an environment to export the produce without any hassles from different departments involved in the system.”

“The government should facilitate good support from banking system by providing moratoriums and enhanced working capital facilities, and ensure duty refunds from the Government of India with immediate effect,” he said.

“Correcting the inverted duty structure under GST on man-made fibre would be another long pending step the government can announce now to support the sector, Mr. Bhageria said.

“These measures would put us on par with international players across the countries who have been competing with us. Providing extra export incentives is another major relief for the sector,” he added.

A letter from the Editor


Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Related Topics
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | May 26, 2020 4:23:05 PM | https://www.thehindu.com/business/Industry/covid-19-synthetic-textil-industry-seeks-special-relief-package/article31306922.ece

Next Story