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Pic: Shutterstock The Tiruppur Exporters Association (TEA) has termed the Union Budget 2021-22 as pragmatic as it addresses issues of all sectors at a time when the Indian economy is getting back to normalcy. The association also welcomed the announcement of setting up seven mega textile parks in the country over a period of 3 years with plug and play facilities.
Union minister of finance and corporate affairs Nirmala Sitharaman presented the Budget in Parliament today.
TEA president Raja M Shanmugham welcomed the fund allocation to roads and highways infrastructure facilities, specifically to Tamil Nadu State. In her Budget speech, Sitharaman proposed 3,500 km of National Highway works in the state of Tamil Nadu at an investment of ₹1.03 lakh crore. She also announced the Chennai-Salem corridor: a 277 km expressway will be awarded, and construction would start in 2021-22.
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With just a few more days for the Union budget, industries in Coimbatore and Tiruppur districts have submitted their demands to the government.
The Southern India Mills Association has sought allocation of ₹9,000 crore for the Technology Upgradation Fund Scheme. Of this, nearly ₹6000 crore is needed to meet the committed liabilities under earlier versions of the scheme. Since the industry is on path to recovery, necessary fund allocation and speedy disbursal of the subsidy will not only support the industry but will also help the Indian economy to grow at a faster rate, it said.
It also sought working capital for the mills to buy cotton and creation of a National Textiles Fund. This will help meet the financial needs of textile units for infrastructure creation and technology adoption.
One of the country s largest car makers chartered three flights in the last 2-3 months to airlift raw materials and parts from the South East Asian countries to its Chennai plant as sea transportation continued to be a challenge due to the non-availability of containers to and from India. A company official, requesting anonymity, said over 150 metric tonnes of raw materials and components were brought into the country by air in three months. These would have, otherwise, come through sea. His company expects to do a few more charter trips in the coming months considering the container shortage is not expected to ease in the near future.
Yarn prices surge in India as supplies fail to match demand, inventories dry up
Garment makers in Tiruppur have urged the spinning mills and the Ministry of Textiles to ensure there was no problem in supplying yarn.
Representative image | Source: Unsplash
Yarn prices, mainly those of cotton yarn, have increased sharply in the last few weeks as inventories dried up and supplies have failed to match demand and spinning mills delayed resumption of their operations across the country.
“For example, yarn of 30s count quoted at Rs 175 a kg during the peak of novel Coronavirus pandemic but now quoting around Rs 250,” said Anand Poppat, a Rajkot-based trader of raw cotton, yarn, and spinning waste.
Garment exporters face yarn shortage, prices shoot up
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Garment exporters face yarn shortage, prices shoot up
Rajesh Chandramouli / TNN / Dec 24, 2020, 04:00 IST
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Chennai: A combination of factors US ban on Chinese cotton, a sudden surge in orders for garments, additional stocking up, increased exports to Tirupur’s competitors including Vietnam and Bangladesh have resulted in yarn shortage for garments exporters.
The situation is so grim for exporters that Tirupur Exporters Association (TEA) has pressed the SOS button alleging that mills were withholding yarn supplies impacting the export business. “The current decision of mills will certainly impact the garment units, exports will largely be affected and more number of workers will incur job losses,” TEA’s president Raja M Shanmugam wrote in the letter. “After the US imposed a ban on Chinese yarn, garment units from Vietnam and Bangladesh (competitors for Tirupur) have star