Demonetisation: Textile firms lay off 10,000 workers

05 Dec '16

2 min read

The textile industry has laid off over 10,000 workers and units were forced to stay shut for up to four days in a week due to the liquidity crunch following the demonetisation of Rs 500 and Rs 1,000 currency notes, according to the Amritsar Textile Processor Association (ATPA). The production at processing units in Amritsar reduced to 25 per cent.

The textile sector was labour intensive, and close to 40 processing units in Amritsar help sustain over 700 warp knitting and textile weaving units in the region, said Krishna Kumar Sharma, president of ATPA, while addressing the media.

The shortage of the new currency notes, so many days after demonetisation is a management failure on the part of the Centre, said Sharma. He urged the government to ease the limitations imposed on the withdrawals of money from savings and current accounts.

Cash crunch has resulted in industries staying shut for four days a week and demonetisation has majorly affected MSME and small scale units by delivering their resourced to large-scale corporates, said Kamal Dalmia, president of Focal Point Industries Welfare Association.

According to Dalmia, the execution of the demonetisation policy has been disastrous for the public. (KD)

ALCHEMPro News Desk – India

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