Business Standard

Falling demand, strong price competition pushing textile market into crisis

Many believe that two major reasons for erosion of India's global competitiveness are the 11 per cent import duty levied on cotton and high volatility in cotton prices during the last two years

Textile sector

Shine Jacob Chennai
Since last Saturday, around 1,800 of the total 2,200 spinning mills in Tamil Nadu decided to stop production and sale of yarn. The state is home to more than half the country’s 4,000-odd spinning mills. These companies’ key grievance is the lack of policy support as a result of the demand recession in the United States and the European Union (EU) markets that has made their businesses unviable.

The mills have approached the Indian Bank Association (IBA) seeking relief, including an extension of a one-year moratorium on the payment of the principal on loans that spinning mills took during the

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 20 2023 | 6:25 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to