MSME Home Textile Sector deeply impacted with spiralling cotton yarn prices

Mumbai, May 25: Prospects for the Home Textile Sector to achieve the target set this year is extremely difficult despite the fact that the Industry had opened up entirely after the second wave of the Covid-19 Pandemic. The Home Textile Sector mainly comprises MSMEs. Also Read | Punjab makes Punjabi eligibility test a must for Group C, D posts The Government of India has been highly Supportive. It has announced several measures like CGS, Loan Restructuring Measures, Moratorium, Deferment of interest Payments, ECLGS as well as CGTMSE for MSMEs on account of the impact of Covid -19 Pandemic. Amit Ruparelia, Convener of Made-Ups Exporters Forum, stated, "The main reason for the problem to achieve the target has been spiralling cotton yarn prices. Post the second wave of the Pandemic, there had been very good all-around demand for Value Add Products such as Home Textiles, Apparels and the sector was fully geared up to meet the demand; however, during the same period, the millers started increasing the prices for Cotton Yarns even though the Raw Cotton prices were stable and at a later stage the cotton price too rose tremendously affecting the business of entire value chain segment". The situation presently is extremely precarious with Value Chain Segment not only having to lose businesses but also the Market Share in countries like the USA. It is also now heading for closure of several MSME units unable to continue with unprecedented high prices of cotton yarns, resulting in severe JOB Losses. The Government of India has been monitoring the situation. It has stated during the last stakeholders' meeting that unless the supply chain ensures security for the supply of raw material at lower prices for the value chain to compete and obtain business, it may choose to withdraw benefits on exports of the cotton yarn and impose duties on exports of raw material if needed. However, so far, no correction has been observed. It appears that the Government may have to resort to ensuring corrective measures; sadly, the value chain segment is heading slowly towards demise in the form of capital and job losses. Also Read | Covid-19: NRI on Gujarat visit found infected with Omicron sub-variant BA.5 -PTC News