Daijiworld Media Network - Coimbatore

Coimbatore, Nov 16: The Southern India Mills’ Association (SIMA) has urged the Centre and the Reserve Bank of India to extend recently announced trade relief measures for the apparel and made-ups sectors to spinning and weaving units as well.

SIMA chairman Durai Palanisamy, in a press release, said India’s textile and apparel exports declined by 10.34% in September 2025 compared to the same month last year. Cotton yarn, fabrics, made-ups and handloom products saw an 11.66% drop, while apparel exports fell by 10.14%.

He noted that production disruptions ranging from 25% to 70% across decentralised powerloom, knitting and garment units—along with weak global demand—have severely impacted revenue and liquidity. Nearly 82% of the firms are reportedly offering credit extensions of up to three to six months. Exporters are also facing order cancellations as buyers shift to lower-tariff destinations, posing a serious threat to long-term partnerships.

Palanisamy said that while the relief measures currently cover garments and made-ups under HS Codes 61, 62, 63 and 94, similar support must be extended to spinning, weaving and processing units classified under HS Codes 52, 54, 55 and 60, which are facing an acute financial crisis. These capital-intensive segments form the backbone of the textile value chain by supplying yarns and fabrics to the apparel and made-ups sectors, he added.

A. Sakthivel, vice chairman of the Apparel Export Promotion Council, welcomed the government’s move, stating that the measures will provide much-needed relief to exporters struggling with prolonged payment cycles and weak global demand.