In a letter to the Prime Minister, the Indian Texpreneurs Federation (ITF, an apex body of textile industry) has requested that the Centre remove the hank yarn obligation. 300 other textile mill owners have written individually to the Prime Minister seeking a meeting with him.

Mills have to produce 40 per cent of total production as hank yarn to be supplied to handloom sector. The letter stated that there was excess production of hank yarn due to increase in spindlage, but consumption has dropped drastically due to growth of the power loom sector.

The textile ministry had constituted an expert committee to study this, but the report has not been released yet, D. Prabhu, ITF secretary, said.

Indian blended-textile products were losing their competitive edge in the world market due to high excise and import duties. If adequate changes are made, it would be a huge boon to the industry with the global demand for man-made fibre cotton on the rise.

The letter also pointed out that there was an urgent need for textile-focused Free Trade Agreements with existing and emerging markets. The ITF also wanted the Government to reduce the tax burden on the textile industry by including it in the lower taxation slab.