Textile mills seek quick resolution
of credit issues
There are more than two dozen vertically integrated textile mills, that spin
yarn, weave fabric and are in manufacture of home textile, which are actively
involved in negotiations with the bankers to get their credit issues quickly
resolved amicably in anticipation of a record bumper cotton crop of 14 million
The textile industry has now an appetite of about 16 million bales annual
consumption of which bulk is expected to be available from local sources.
Financing is a big issue for majority of about 400 textile mills in the country
who were not in a position to clear their bank credits of 2006-07 because of
sluggish export of yarn, fabric, bedwear, and other textile products.
Cotton financing for current season is being estimated over Rs100 billion.
Textile groups with good track record will obviously grab credit lines and will
take initiative in the business much earlier than others.