The textile sector has rejected any further rise to the power tariff, and termed it detrimental to the viability of the industry at large. The textile industry has been demanding a separate textile industry power tariff in order to ensure smooth flow of exports. According to the textile circles, India was offering special incentive in the shape of duty drawback to those textile units, which rely on self-generating the electricity.

According to the industry circles, the conversion rate of electricity was 35%, which is common in all competing countries. The industry circles said the conversion cost would rise further with the increase in tariff and ultimately put the industry upside down like it had already done with the independent feeder-run textile units.

The press reports have also suggested that the exporters have booked fresh orders of approximately $300 million of cotton yarn amid a serious crisis of yarn prices. The industry sources expressed their severe doubts, and maintained that the situation would only lead to further worsening.