SIMA Seeks Extension Of Trade Relief Measures To Spinning And Weaving Units
The Southern India Mills’ Association (SIMA) has urged the Central government and the Reserve Bank of India to extend the recently announced trade relief measures for the apparel and made-ups sectors to spinning and weaving units as well.
In a press release, SIMA chairman Durai Palanisamy said India’s textile and apparel exports fell 10.34% in September 2025 compared to the same month last year. Exports of cotton yarn, fabrics, made-ups and handloom products declined by 11.66%, while apparel exports dropped 10.14%.
He noted that production disruptions of 25% to 70% across decentralised powerloom, knitting and garment units, combined with weak global demand, have severely affected revenue and liquidity. Nearly 82% of units are reportedly offering extended credit of three to six months, while exporters face order cancellations as buyers shift to lower-tariff sourcing destinations, posing risks to long-term relationships.
Palanisamy said that although the relief package currently covers garments and made-ups under HS Codes 61, 62, 63 and 94, similar support is urgently needed for spinning, weaving and processing units falling under HS Codes 52, 54, 55 and 60. These capital-intensive segments form the backbone of the textile value chain and supply essential yarns and fabrics to downstream apparel and made-ups manufacturers, he added.
Welcoming the government’s move, A. Sakthivel, vice-chairman of the Apparel Export Promotion Council, said the measures offer much-needed support to exporters grappling with prolonged payment cycles and subdued global demand.
