Us -China trade war has a pressing impact on business globally And it is really serious in India especially with Textile Industry. Poor demand for cotton and yarn from China has hit the exports gravely. Indian textile industry is passing through a most difficult time presently. Yarn spinning mills are under trouble and running at the cash loss, the mills are running on 70% capacities.The yarn and fabric sector in the wake of a 35% decline in cotton yarn exports in the first quarter of FY20, Exports of cotton yarn and fabrics declined 9.98% and 10.54%, respectively in July. Raw material prices are higher and yarn prices are not aligned with the raw material. The poor demand is resulting in stock accumulation and following in poor pricing. When there will be under utilisation and shut down situations the job losses will be obvious. It is critically wrong when the textile industry is the second largest employment industry after agriculture but now it is helpless.
There were times when the masses were there for recruitments and now the same industry is causing jobless crowd(Shown in the advertisement). The advertisement( The Indian Express, dated August 20, carried an advertisement by Northern India Textile Mills Association (NITMA) ) is made to draw the attention of the governing bodies who can help the industry by
- Balancing M.S.P. of cotton
- Reissuing the subsidy and incentive schemes
- Making new industry favourable policies for example Rebate of State and Central Taxes and Levies (RoSCTL)
- Stopping and discouraging imports of textile goods.
The Indian Express, dated August 20, carried an advertisement by Northern India Textile Mills Association (NITMA). It was titled ‘Indian Spinning Industry Facing Biggest Crisis, Resulting in Huge Job Losses’.https://thelogicalindian.com/awareness/textile-industry-advertisement/
The Government of India should turn this mess in an opportunity by playing smart role.https://economictimes.indiatimes.com/news/economy/foreign-trade/new-sops-to-check-yarn-exports-fall/articleshow/70882899.cms