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The Indian Texpreneurs Federation (ITF), a body of textile industry in the region, today sought Centre's assistance to ease the short term problems, in the wake of the ban on high denomination currency notes.
In a letter to Union Textile Minister Smrithi Irani, ITF said that the industry was ready to absorb short term pains for the long term definite gains and was confident about strong consumption driven growth in future due to the cleaning up act, which was good for the industry to organise itself towards a efficient business operations.
However, the sector was looking for some practical help from the Centre, as due to low spending, consumption was taking a hit and the retailers naturally were reducing the purchases, which was affecting the manufacturing in terms of poor off take of yarn and fabrics form the buyers, ITF Secretary, Prabhu Dhamodharan said.
During these lean times, it was natural for the trade to expect more credit from manufacturers like spinning mills, our collections also badly hit and being a peak cotton season, mills need more money in both sides for more credit in yarn sales and more money required to store cotton, he said.
Stating that the mills were placing requests with their respective bankers for enhancement of working capital, ITF requested the Centre to advise banks to consider the requests or grant one time short term working capital requirements.
Any reduction in interest rates will also help working capital intensive industry like spinning to ease out some difficulties owing to low volume of business and with more low cost money in the hands of banks, he said adding "This move is possible and will trigger positive sentiments across the industry."
As Merchandise Export from India Scheme (MeIS), can increase the cost competitiveness of our product to help spinning sector to capture more market share in exports, Prabhu said and appealed to the minister to recommend the measures to finance ministry for further action.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)