The Southern India Mills Association (SIMA), an apex body of textile mills has appealed to the government, to withdraw the hike in VAT on petrol and diesel to save textile industry from its impact.

Association chairman, M. Senthilkumar in a communication to the state’s chief minister, termed the hike as unwarranted considering that the centre has already announced implementation of the GST from July one.

The textile industry in Tamil Nadu is already in a disadvantageous position as the spinning sector spends around Rs. 6 per kg to procure the raw material from upcountry markets, and another Rs. 4 per kg to sell the yarn in those markets, while other states enjoy huge incentives.

The hike have considerable impact on the transport cost of all items as the textile clusters of different value segments are located in different places, and with the mill sector using diesel generators to tide over load shedding and tripping, it could increase the power cost as well, Senthilkumar added.

The hike would have impact not only on textile industry but also on the common man.

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