High production costs may affect 3,600 textile factories
16 Jan '07
1 min read
Financial crisis has paralyzed Iranian textile industry to such an extent that 90 percent of its 3,600 textile units are on the verge of closure. It is required that Government should increase labourers' monthly wages to IRR2.5 million ($270).
In the month of May, Government had promised a grant of $500 million to revive the distressed textile sector.
But funds from the state are not enough to restore this crisis and administration should develop strategies to bring down production costs, according to Textile Industries Association Secretary Jamshid Bassiri.
He added that many textile factories all over the country had downed shutters owing to heavy labour costs.
Production costs could be cut down by revising laws. Due to these costs, textiles sell at about 35 percent higher rates in Iran compared to China, Pakistan, Bangladesh and other countries.
Biggest local textile firms Iran Termeh and Tehran Patou are currently facing financial problems on account of mismanagement.
marketing@alchempro.com
