South Africa's garment industry is facing a growing labour shortage after anti-immigrant protests prompted many migrant workers to leave the country. Factory owners in Newcastle say they have lost up to 19% of their workforce, while manufacturers warn that replacing skilled employees will take years. With falling orders, labour shortages, and financial pressures mounting, some factories now fear closure despite the country's high unemployment rate.

South Africa's Garment Industry Faces Worker Shortage After Anti-Immigrant Protests

Telangana minister KT Rama Rao writes to Irani, urges cooperation to protect livelihoods of people in the textile industry

Telangana Municipal Administration and Urban Development Minister KT Rama Rao has urged Union Textile Minister Smriti Irani for cooperation to protect livelihoods of people in the textile industry.

"Consumption patterns across national/ international markets will change in the post COVID-19 world, e.g. more spending will be on healthcare, resulting in higher opportunities from healthcare institutions and also the technical textiles segment which caters to medical textiles. Retail channels will shift more towards online than brick and mortar stores, which point to need for fast fashion and quicker turnaround at the factory. This points to better integration of the segments i.e. having integrated textile zones to improve efficiencies," KTR said in the letter.

"Providing wage support of up to 50 per cent of wages, contingent on continued employment of the workforce. This support can be given for a period of up to 6 months, in the form of a long-term loan which the industry would need to repay in instalments after a stipulated period," the letter further said.

Urging for statutory payments, he said, "Allow the industry a one-time extension of 3 months for the deposit of statutory dues of PF and ESI. This will release some cash for the industry."

"Facilitate higher temporary credit facilities (up to 30 per cent of current limits) to meet the cash losses during this slowdown, so that it will enable the industry to meet its obligations towards its vendors and statutory payments so that the entire supply chain is protected. The Govt of India could consider funding this through a concessional line of credit so that the banks are adequately supported, and the funds return to the Government in due course," it read.

The letter further read, "While the RBI has already announced measures to improve liquidity and reduce the interest rates, this can be further augmented by a complete interest waiver or an interest subvention scheme of 2-3 per cent on all loans (including working capital credit) availed by the sector as has been done in the past under TUFS. Further, a special moratorium of 1 year may also be considered."

"Further, in order to encourage faster reboot of the sector, the Centre could consider 50 per cent yarn subsidy across the handloom industry. As a special case, the GST Council should also consider complete waiver of GST on handloom products for a period of 2 years to boost the sector," he added. 
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(With inputs from ANI)

Telangana minister KT Rama Rao writes to Irani, urges cooperation to protect livelihoods of people in the textile industry Telangana Municipal Administration and Urban Development Minister KT Rama Rao has urged Union Textile Minister Smriti Irani for cooperation to protect livelihoods of people in the textile industry.

Telangana minister KT Rama Rao writes to Irani, urges cooperation to protect livelihoods of people in the textile industry Telangana Municipal Administration and Urban Development Minister KT Rama Rao has urged Union Textile Minister Smriti Irani for cooperation to protect livelihoods of people in the textile industry. "Consumption patterns across national/ international markets will change in the post COVID-19 world, e.g. more spending will be on healthcare, resulting in higher opportunities from healthcare institutions and also the technical textiles segment which caters to medical textiles. Retail channels will shift more towards online than brick and mortar stores, which point to need for fast fashion and quicker turnaround at the factory. This points to better integration of the segments i.e. having integrated textile zones to improve efficiencies," KTR said in the letter. "Providing wage support of up to 50 per cent of wages, contingent on continued employment of the workforce. This support can be given for a period of up to 6 months, in the form of a long-term loan which the industry would need to repay in instalments after a stipulated period," the letter further said. Urging for statutory payments, he said, "Allow the industry a one-time extension of 3 months for the deposit of statutory dues of PF and ESI. This will release some cash for the industry." "Facilitate higher temporary credit facilities (up to 30 per cent of current limits) to meet the cash losses during this slowdown, so that it will enable the industry to meet its obligations towards its vendors and statutory payments so that the entire supply chain is protected. The Govt of India could consider funding this through a concessional line of credit so that the banks are adequately supported, and the funds return to the Government in due course," it read. The letter further read, "While the RBI has already announced measures to improve liquidity and reduce the interest rates, this can be further augmented by a complete interest waiver or an interest subvention scheme of 2-3 per cent on all loans (including working capital credit) availed by the sector as has been done in the past under TUFS. Further, a special moratorium of 1 year may also be considered." "Further, in order to encourage faster reboot of the sector, the Centre could consider 50 per cent yarn subsidy across the handloom industry. As a special case, the GST Council should also consider complete waiver of GST on handloom products for a period of 2 years to boost the sector," he added. (With inputs from ANI)

Telangana minister KT Rama Rao writes to Irani, urges cooperation to protect livelihoods of people in textile industry

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South Africa's Garment Industry Faces Worker Shortage After Anti-Immigrant Protests

Telangana minister KT Rama Rao writes to Irani, urges cooperation to protect livelihoods of people in textile industry