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 bales.

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.