Chennai, Aug 23 (KNN) Despite the upcoming festive season, the textile mills in Tamil Nadu are yet to see revival of orders.

The textile mills have now been facing slowdown in orders for almost six months due to higher cotton prices, slowdown in orders in the export and domestic markets, and high production costs.

As per reports, the State government has asked for supply of 40s count yarn directly from the mills for the free uniform and saree schemes. But, the mills are reluctant to supply as the cotton prices are increasing.

According to Jayabal, president of the Recycle Textile Federation, orders declined 29 per cent for the mills and just 10 per cent of these orders have come back. In the last four-five years, the total spindles have also increased.

“There are no orders for the existing capacities. The governments are trying to attract more investments. But, there are no orders. They should focus on sustaining the existing units,” he said.

He pointed out that the electricity tariff was high in Tamil Nadu compared to other States and this made revival difficult for the textile mills. The smaller mills that came under the LT CT tariff slab were paying more compared to the bigger mills.

The textile MSMEs in Tamil Nadu went on strike last month demanding supportive measures and called off the strike after a meeting with the Tamil Nadu ministers.

“There is respite from the slowdown though the State government assured us supportive measures,” he said.  (KNN Bureau)