Tirupur’s textile entrepreneurs will be submitting a report on financial stress faced by textile units and shortcomings to value-addition to cotton before the Union Finance Ministry. The study to be conducted by the entrepreneurs would focus on the stresses encountered by the textile units due to extreme fluctuations happened in cotton prices since 2010 and also the difficulties faced in obtaining the working capital credits at lower interests. S Dhananjayan, Chartered Accountant and consultant to Texpreneurs Forum, suggested that as opposed to the present lending method based considerably on external credit ratings of the customer followed by banks, the Government should classify the working capital of the mills in line with the agricultural advances and hence encourage the textile units to hold huge cotton inventory.
