Tamil Nadu

Textile exporters in Karur call for strike

KARUR: The Karur Textile Manufacturer Exporters’ Association has given a call to all textile industry related units in the district to down shutters on Saturday to highlight the industry’s problems.

In addition, the industry will again cease to operate on May 16 in response to a State-wide closure call given by the Tamil Nadu Textile Forum.

An urgent meeting called by the Association here on Saturday passed resolutions including those on participating in the strike call on both the days.

While Saturday’s strike call pertains to Karur district units only, the May 16 strike would hit operations all over the State.

A resolution passed at the meeting pointed out that while the industry was still reeling under the effect of Rupee appreciation vis-À-vis US dollar, service tax being slapped on a variety of utilities offered were sapping the export units. In particular the service tax of 12.36 per cent on commission given to foreign agents and levy of service tax on 14 other activities is turning out to be a burden on the units.

While the trade policy noted that the service tax on commission given to foreign agents would stand withdrawn, there was no movement forward so far in that regard.

Similarly, the Association through another resolution urged the governments to rein in the fluctuating yarn price.

Claiming that domestic political compulsions have contributed to the situation, the resolution wanted the yarn price to be brought under a stabilising mechanism. Instability should be done away with, the resolution noted.

The Association called upon all the allied units also to join the strike call on Saturday, which the meeting felt would convey the sentiments of the exporters.

Already, the Karur District Weaving and Knitting Factory Owners’ Association has called for a three day strike of its units in the district from Monday.

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