Impact of Demonetisation on Textile Industry of Maharashtra
The Textile Industry is facing the heat of centre's decision to demonetize the Rs 500 and Rs 1,000 currency notes.
Companies are not able to pay wages to workers and not able to procure raw materials. While agreeing that the centre's move
will stream line the system, it will increase the cost of doing business. Tirupur Exporters Association (TEA) welcomed the
government's move, but requested to allow withdrawal of higher amount, based on the average amount they have been
regularly withdrawing from the banks for the past six months, which would help them to meet the payment of
weekly wages and other sundry expenses without having any difficulties. Many of the employees don't have either the bank
accounts or the proper address proof and despite the units are ready to give letter, banks are not willing to open accounts for
them. The positive side of the story, however, is that many of the units in the traditional clusters were not recording PF and
other employee benefits properly, since most of the transactions has been in cash, they will either pay less or wont show
them on records. Now, all this will not be possible.
Index terms- Textile, Cotton, Kapas, Ginning Mills, Demonetization, Black Money, Cash Crunch, Non-payment of Wages,
Raw Material, Lack of Bank Accounts, piling up of Inventor, dispensing of old currency.