APTMA have informed that such as increasing cotton prices, declining yarn prices, rising power charges, and market imbalances following COVID are the reason of shutdown.
The textile industry in Andhra Pradesh has indicated that a combination of local and international challenges has led to the closure of half a dozen mills, with several others on the verge of shutting down. It was warned by the industry that, without prompt financial assistance from the government, it would be unable to meet its financial commitments. The dire situation facing the state’s textile sector was expressed with deep concern by the Andhra Pradesh Textile Mills’ Association (APTMA).
APTMA chairman L Raghuram Reddy, P Koti Rao, and other officials informed the media that the textile industry in Andhra Pradesh was facing a range of challenges, such as increasing cotton prices, declining yarn prices, rising power charges, and market imbalances following COVID. These factors have significantly impacted the industry’s financial health and operational stability, they stated.
While Andhra Pradesh’s textile mills, primarily spinning mills, are dealing with challenges both domestically and globally, the Association has been particularly concerned about issues specific to the state. The association called for the state government to immediately release Rs 1,500 crore for various subsidies. It also requested the pending power subsidy of Rs 192 crore to be disbursed. Furthermore, the government was urged to provide an electricity subsidy of Rs 2 per unit, similar to what the neighbouring state of Telangana has received. Exemptions from recent electricity duty charges, true-up charges, and FPCCI charges were also sought.
The association emphasized that numerous mills were struggling to fulfill their financial obligations and meet bank installment payments due to these challenges. Six textile mills have already ceased operations, and several others are on the brink of closure. APTMA urgently appealed to the state government for immediate intervention to support the textile industry.