Textile manufacturers welcome move

The Centre’s decision of scrapping Rs.500 and Rs.1,000 currency notes has received a good response from textile and trade bodies of Karur.

Though a section of unorganised textile manufacturers expressed apprehension over the sudden decision, many of organised textile manufactures have welcomed it. A cross section of textile owners said that it would not affect the fortune of manufacturers as many exporters had switched over to transparent business transaction with overseas customers. As far as organised industries were concerned, black transactions had been reduced to a great extent as overseas transactions were made through Electronic Clearing System.

“It is a step in the right direction. We have switched over to transparent transactions. We may find it difficult in getting currency notes for a few days. However, there is no need for worry as everything will be settled within a few weeks,” M. Nachimuthu, president, Karur Textile Manufacturing Exporters’ Association, said on Wednesday.

V. Ananda Padmanaban, Chief Executive Officer, Karur Textile Manufacturing Exporters’ Association, said that their transactions had been streamlined with the emergence of net banking. The new move would further streamline the system. However, it is said that the move had shocked a section of manufacturers, who depended on domestic market. They were said to be confused on accounting huge cash with banks, which was originally kept for “secondary ways of transactions”.

Similarly, some manufacturers said that severe restrictions on withdrawals from banks would hit the weekly payment to contract workers, who were generally paid on Saturdays. The cash required for paying electricity bills and meeting the day to day expenditure would be hit for at least two months, says a manufacturer.


Major shops, particularly jewellery traders, remained closed in several parts of the district on Wednesday following demonetization of the currency notes of Rs. 1,000 and Rs. 500 denominations.

A number of two-wheeler and four-wheeler riders were disappointed as petrol pumps did not accept currency notes in the denomination of Rs. 500 and Rs. 1,000 forcing customers without refilling fuel.

The Indian Made Foreign Liquor shops run by the Tamil Nadu State Marketing Society registered less business.

Handbills to the effect that currencies of Rs. 500 and Rs. 1,000 will not be accepted were seen pasted at IMFL shops.

The usually crowded IMFL shop at Santhanathapuram near the new bus stand wore a deserted look.

All the Automated Teller Machine (ATM) units wore deserted look across the district.

(Source: Tiruchi Bureau, The Hindu, November 10, 2016)