Diesel price hike rude shock to Indian textile sector (India)

The diesel price hike of Rs 5 per litre initiated by the Indian government has received strong reaction from the ailing Indian textile industry.

Mr. Dinakaran, Chairman of The Southern India Mills Association (SIMA) in a press release today has stated, “Diesel price hike of Rs 5 per litre in one stroke has come as a rude shock to the ailing textile industry.”

“The state of Tamil Nadu, which accounts for 47 percent of overall Indian yarn production, is already facing 50 percent power shortage and the price hike will aggravate the situation”, he said.

Dinakaran stated that India is at a 20 percent disadvantage in textile business vis-à-vis Bangladesh and the current power situation is lending a big blow to the industry.

SIMA has appealed to the power centers in India such as the Prime Minister to roll back the price hike.

According to SIMA, Indian textile industry employs 91 million people and earned over US$ 37 billion in 2011-12 and is the single largest foreign exchange earner.