Madurai, Nov. 11 Multinationals’ entry in cotton trade has eroded the global competitiveness of the Indian textile industry, said Mr C.K. Narayanasamy, Executive Committee Member, Southern India Mills Association (SIMA).
At a meeting with the media here on Tuesday, he said mills, especially in the small and medium sector, are the worst affected as they now have to pay 30 to 50 per cent more for Indian quality cotton, losing the cost advantage to the competition. Rescheduling of debts has helped manage the situation for a while but that cannot be a solution, he said.
The Executive Committee Member of SIMA said the situation is becoming a challenge to the sector. There is an urgent need to stop registration of contract for exports and ban export for the 2009-10 season, said SIMA, the largest employers’ organisation representing the organised textile sector in the country.
Executive committee members of SIMA Mr V. Selvapathy, Mr Sivabalasubramanian and Mr A. Niranjan Shankar were also present at the meeting.
Source : Business Line