Textile mills cut production on rising input costs

Textile mills across India are reducing their capacities due to unfavourable market conditions. Industry executives say the rising cost of raw material, long power cuts, increased cost of borrowing and reduction in the duty drawback rates have meant that existing capacities are underutilised. They also claim that around 1.5 million jobs have been lost in the sector in the past 12 months. “I had to shut my mill due to heavy losses. The input costs have risen drastically and that has resulted in closure of many mills in North India,” said Sunil Jain, chairman and managing director, IC Textiles Ltd. Nearly 1,100 workers lost jobs due to the closure of Jain’s mill. Jain, also the president of the Northern India Textile Mills Association (NITMA), says many more mills are facing tough times but do not talk about it due to the fear... [read full story]