127 textile mills closed in India in the past three years

In the past three years, due to the restrictions on the export of cotton yarns and the huge inventory accumulation, 127 textile factories were closed. The factories previously provided employment for 41,118 employees, the Indian Parliament said today.

Indian National Textile Minister Lakshmi wrote in response to a question from the People’s Court saying: “As of May 31, 2011, over the past three years, 127 cotton/man-made textile mills (non-small-scale units) were closed. ”

Lakshmi said that the government received feedback from industry representatives about the mismatch between supply and demand, the huge inventory of finished products, and restrictions on the export prices of cotton yarns and rising input prices.

Lakshmi said that among the 127 closed textile factories, as of March 31, 2010, 38 factories were registered with the industrial and financial reconstruction board. Industrial and Financial Rebuilding The Board of Directors decided to give relief or give concessions to units that are in poor condition. The government has formulated a plan for the rehabilitation of textile workers.

In April last year, the government restricted the export of cotton yarns to 720 million kilograms, which led to a sharp increase in the inventory of textile factories. On April 1 this year, after the manufacturers discovered that their inventory was huge, such restrictions were removed.

In July 2011, the Indian government restored the Customs Duty Rights and Obligation Certificate Program (DEPB) and granted customs duty rebates for the export of cotton yarn, effective from April 1, 2011.

In April 2010, as the price of cotton rose sharply, this incentive was cancelled.