Chennai, Dec 05: Tamil Nadu government has urged the Centre to take urgent measures to solve the crisis facing the textile industry in the state mainly due to steep increase in yarn prices. In a letter, copy of which was released to the press here today, Chief Minister Jayalalithaa urged Union Textiles Minister Syed Shahnawaz Hussain to ensure the availability of hank yarn to the handloom weavers by directing the spinning mills to fulfill the 40 per cent hank yarn obligation without any default.
She also sought revival of the hank yarn subsidy scheme by giving a subsidy of Rs 30 per kg of hank yarn to offset the price hike until the yarn price becomes normal.
The Chief Minister also requested Hussain to set up a yarn bank so as to procure, hold and supply adequate quantity of yarn to the handloom sector.
It was pointed out in the letter that in recent days the price of both hank yarn and cone yarn had increased to the extent of 20 to 30 per cent when compared to last year's prices creating uncertainty among the textile producers in booking new orders.
The hosiery, powerloom and handloom units had virtually come to standstill causing unemployment to lakhs of people, it was pointed out in the letter.
Bureau Report