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The spinning industry faces the historical slowdown, needs a big relief from the government

Wednesday - August 21, 2019 4:07 pm , Category : BUSINESS
Crisis deepens on job of millions of people in the spinning industry
Crisis deepens on job of millions of people in the spinning industry

The global economic slowdown impacts India; Waist of the spinning industry in India broken!

AUG 21 (WTN) - The impact of the global economic slowdown is gradually beginning to appear in India. As you know, the auto industry, in the country, is currently facing a huge recession. In this context, the textile industry and the spinning industry, which provides employment to crores of people, have also fallen into recession. For your information, let you know that at this time, the spinning industry is going through the biggest economic crisis ever.

The condition of this sector has become that about one-third of the spinning production capacity of the country has been shut down, and the remaining spinning mills are facing losses. After all, what is the reason that the spinning industry is facing such a big crisis? Let us tell you in detail.

Due to the recession that the spinning industry is going through, thousands of employees are gradually losing their jobs. For your information, let you know that the cotton and blends spinning industry is going through the same kind of crisis, which it faced in the year 2010-11. Due to this hit of recession, the spinning mills are not in this situation so that they can buy Indian cotton. It is being said that if this condition of the recession continues, then in the next season there will be no buyers of 4 crore bales of cotton coming in the market, which is worth about Rs. 80,000 crores.

According to the information, Indian yarn is struggling to compete in the global market due to GST and other taxes of the Center and the state. According to the data, in the April-June quarter, cotton yarn exports fell by 34.6 per cent year-on-year, which is a cause for concern. Cotton stockiest have stocked cotton bales worth several crores rupees. But with imports more than doubling this time in the country, it seems that stockiest are going to get loss.

After the situation of the spinning mills worsens, it is evident that they hardly buy cotton. If this happens, it can cause huge losses to cotton-producing farmers and cotton stockiest. For your information, let you know that for the cotton season 2019-20, 10 to 20 per cent more cotton is sown in the northern regional states. In such a situation, if the spinning mills did not buy cotton, the loss of traders and farmers associated with it would be natural.

For your information, let you know that about 10 crore people are employed directly and indirectly in the Indian textile industry. This sector is the most employable sector after farming. If the slowdown in this sector continues in this manner, then people are likely to be unemployed on a large scale. This is why, the Northern India Textile Mills Association has demanded from the government that the government should take some concrete steps immediately, so that millions of people can avoid of losing of jobs.

Actually, there are many reasons for the slowdown in this sector. The industry is slowly getting destroyed due to many problems; like high interest rate on loans, high cost of raw materials and cheap imports of clothes and yarn. According to the information, Indian mills are incurring a loss of 20 to 25 rupees per kg due to high rate of raw materials. At the same time, due to the import of cheap clothes from countries like Sri Lanka, Bangladesh and Indonesia, this industry of India is competing hard also.

It is being said that if the Central Government has not issued any special package for the textile and spinning industry, then the deepening crisis on them will become even deeper. There is a demand from the people associated with this industry that a special 6-member Textiles Committee should be formed to improve the condition of this sector. Also, the government should limit imports and impose heavy duty on them, so that the local spinning mills can get relief and they can compete. The government should provide loans at a cheaper interest rate for this sector. If the government does not pay attention to these things in time, then in the coming time, no one can stop millions of people associated with this sector from being unemployed.