Why Is India Textile Enterprise Forced To Cut Production?

August 17th, India

Alliance and South

The Textile Mills Association, the North India Textile Mills Association and the India Textile Export Promotion Association held a meeting to discuss the difficulties faced by India's cotton textile industry.

It is understood that India textile enterprises have been forced to cut production due to rising costs and weak demand.

At the meeting, a number of India industry bodies decided to appoint an organization to study the current situation and write a memorandum of understanding to the government.

It is understood that at present, the output of most factories in India has decreased by 15-20%, or is preparing to do so.

The head of a textile enterprise said that the factory has shut down for a day from this month, and the current crisis has forced factories to cut production capacity, which has not been seen in 40 years.

The factory is closed for one day a week, and the small plant is closed for two days a week, as is the case in northern India.

In addition, in recent years, governments around India have issued stimulus policies, and the huge expansion of domestic textile production capacity has also brought trouble to the textile industry.

Capacity expansion and

The sharp drop in demand has made textile enterprises hit hard.

According to D.K.Nair, general secretary of India textile industry alliance, the export volume of India cotton textiles has dropped to 100 million kg in the two quarter of this year from the highest level of 140 million kg per month last year.

The sharp decline in export demand in such a short period made the India textile industry unprepared.

A significant depreciation of the renminbi will lead to India.

The price increase in the international market has further frustrated India's textile exports.

According to the India Textile Export Promotion Association, now the Chinese buyers have postponed the opening of the certificate. India textile mills have become increasingly nervous, and there is no choice but to stop production.

Most of the 500 small textile mills in Tamil Nadu are closed for one to two days a week.

Because there is no India.

The consumption tax is only one day per week for pure cotton yarn manufacturers.

The southern India Textile Mills Association said that the number of textile workers in India was huge. If the production and production stopped for a long time, a large number of employees would be lost and the workforce would be unstable.

The situation in India is very worrying. The government should immediately provide support to ensure the livelihood of the textile workers.

In addition, the government should also provide interest subsidies to try to promote textile exports. The government postponed the project reimbursement of the textile technology upgrading fund, which has adversely affected the textile industry.