Tamil Nadu

Tirupur entrepreneurs seek extension of interest subvention

As many as 214 textile entrepreneurs sent separate representations to the Union Government on Thursday seeking extension of the interest subvention scheme to the fabric and yarn manufacturing units in the textile sector.

The plea was made at this juncture as the Union Government was set to take a decision in the next few days. The scheme gives three per cent as interest subvention to offset the credit expenditure.

The Government had already announced that the scheme was planned to be extended to labour intensive sectors which make the fabric and yarn manufacturers hopeful as these two segments were also highly labour oriented ones. “All these 214 units, who are members of Indian Texpreneurs Federation (ITF), primarily wanted the fabric and yarn manufacturing units to be covered under the scheme so as to obtain optimal price realisation in exports.

Recently, the excess supply has resulted in poor price realisation for the entrepreneurs”, pointed out ITF secretary Prabhu Damodaran.

According to fabric and yarn manufacturers, production capacity in the country has exponentially grown in the last few years but the exports to China, which is the main market for the Indian produces, shrunk in tandem with that.

“This scenario has substantially dented the prowess of the fabric and yarn manufacturers in Tirupur and its hinterland”, said Mr. Prabhu.

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Printable version | Oct 5, 2022 4:40:53 am | https://www.thehindu.com/news/national/tamil-nadu/tirupur-entrepreneurs-seek-extension-of-interest-subvention/article7588887.ece