The Northern India Textile Mills Association (NITMA) and the Southern India Mills’ Association (SIMA) want a moratorium on repayment of loan taken by textile mills from banks in light of the crisis situation generated by the coronavirus pandemic. While SIMA has written to Prime Minister Narendra Modi for a year’s moratorium, NITMA wants it for six months.
SIMA has requested for a year-long moratorium from April 1 this year to March 31, 2021, secretary general K Selvaraju said in a press release. Under the present situation, majority of textile industry workers are not reporting for work and migrant workers are also returning to their native places, affecting production, he said.The Northern India Textile Mills Association (NITMA) and the Southern India Mills' Association (SIMA) want a moratorium on repayment of loan taken by textile mills from banks in light of the crisis situation generated by the coronavirus pandemic. While SIMA has written to Prime Minister Narendra Modi for a year's moratorium, NITMA wants it for six months.#
The pandemic has resulted in demand slump and uncertain growth prospects during 2020, NITMA said in a statement.
NITMA president Sanjay Garg said the looming crisis has come as a double whammy to the already encumbered textiles sector when the cumulative growth in textiles production has been down.
The sector is facing severe financial stress leading to growing non-performing assets due to continued lower production and decline in exports in the wake of prolonged global slump due to US-China trade war and lack of domestic demand, Garg added.
Fibre2Fashion News Desk (DS)
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