US Tariffs Could Impact AP’s Textile Industry With Up To ₹20K Crore

Vijayawada: The 50 percent tariff tax by the United States will affect the EP textile industry between 15,000 crube to 20,000 crore per year. The textile sector is already looking for the state government’s power tariff and a discount on incentives to sustain itself. The US tariff will make the industry unable to survive and dismiss the lakhs of the workers.

EP’s textile sector, yarn, such as raw materials and fabrics, bed shoes and clothes, such as finished products, each year in the rupee thousands of crore win and provide a few lakh workers employment.

With the US administration led by President Donald Donald Trump, Indian exporters starting on August 27, which starts on August 27, should decide whether they can maintain their exports to the United States despite their high tariff or stop export and search for alternative markets around the world. However, it will take time to develop alternative export markets.

“After agriculture, the textile industry provides maximum employment. We expect a major impact on the textile sector due to the US tariffs. The AP government will have to save the EP government by providing various incentives, including the release of the prisoners to keep the prisoners in the state.”

AP’s textile sector is already facing uncertainty. 30-35 of more than 100 spinning mills have already closed. The most important reason for this is the high power tariff. It was about 6.50 per unit, but when the YSRC ruled the state, it increased up to 9.50. Since power loads constitute approximately 53 percent of the production cost, the textile sector is already struggling to survive. In the TD, the government made the government focused on the issue when it dropped the tariff bomb.

Stakeholders in the textile sector apply to the Coalition Government in the state to revive the power tariff policy dated 2015-2020. They want the state government to allow them to establish captive plants in raised highland areas such as Kurnool and Anantapur in the Rayalaseema region, so that they can produce power to run their industries and provide much power to the state power network.

Stakeholders also want various incentives such as the state government’s power subsidies, bank loan interest subsidies and capital subsidies to release their debts, thus helping the industry to be applicable.

The textile industry brought these issues to Prime Minister N. Chandrababu Naidu four months ago. Naidu then ordered the capital to create a committee to examine the issue and submit a report. The committee has not yet met its stakeholders in the textile industry.