AI in weaving and stitching will increase productivity
The Cotton Textiles Export Promotion Council, popularly known as Texprocil, has been the international face of cotton textiles from India facilitating exports worldwide. With a membership of over 3,000 companies, it connects international buyers with suppliers and facilitates interaction that enables them to source their specific needs. Further, the council provides updates on international product trends, trade-related issues, advances in technology and the latest developments in the industry, as well as existing and emerging markets. Ujwal Lahoti, chairman, Texprocil, talks to Fibre2Fashion about the declining exports of cotton.
India is likely to export nearly one-fifth less cotton than previously estimated due to the pink bollworm affect. How will this impact revenues?
In the cotton year 2017-18, it was estimated that total cotton output will be higher than last year by about 9 per cent in spite of pink bollworm issue in some of the cotton producing states. Major reason for decline in export of cotton is narrowing price parity between Indian cotton and international cotton prices.
What are the reasons for low fabric exports in the last few years?
In the international market, there is a higher demand for processed fabrics whereas the processing sector is facing various issues in zero discharge, and hence widening the demand-supply situation. In the absence of continued and large-scale investment in the processing sector, there is a declining trend in the export of fabrics. If the textile clusters are developed along the coast with marine discharge facilities, export of fabrics will increase manifold in a short span of time.
What measures do you suggest for increasing the exports of textiles?
Early finalisation of all the pending FTA/RTAs, renegotiation of Indo-Korea CEPA, extending MEIS to export of yarn, extending ROSL to fabric export will lead to improved competitiveness of Indian exporters and thereby increase in export.
The bollworm infestation has occurred in spite of adopting Bt cotton. Given this, will it be possible for India to maintain its status as the world's second-largest exporter of the fibre?
The existing Bt cotton seed has exceeded its lifespan and the departments concerned are in the process of approving a new set of seed varieties. Hopefully, seed-related issues will be sorted out at the earliest.
How can Indian exporters beat competition from countries that have preferential duties with the EU?
The India- EU FTA negotiations are in an advanced stage, and I hope that all the pending issues are negotiated and finalised soon. In the meantime, policy support from the government in granting additional relief to the extent of tariff disadvantage in the EU will help boost our exports.
What is your take on the 5 per cent ROSL benefit on fabrics?
The council continues to represent to the government by providing all required details and justification to extend ROSL on fabrics as well. We sincerely plead with the government to favourably consider our representations.
The Indian logistics sector has been granted infrastructure status. How will this help the Indian textiles industry?
This would help improve seamless movement of textile products in the entire value chain across the country. The textiles sector in India has a unique need for zig-zag movement of goods at every stage of conversion. For example, the cotton fibre transported from west India to south India and yarn transported from south India to the west and north India for conversion into grey fabrics and again transported to Gujarat and other parts of India for processing and again transported to different parts of India for conversion into value-added home textiles and garments. The introduction of GST and e-way bill will improve logistics considerably and the textiles industry will be able to improve its competitiveness by cutting down on lead time.
The council promotes exports of raw cotton, cotton yarns and blended yarns, woven and knitted fabrics, home textiles, technical textiles. Which category is faring well? Why?
Cotton and cotton yarn are commodity businesses and are highly sensitive to the price factor. Whenever prices of Indian cotton are lower than international prices, there is a spurt in exports. As far as cotton yarn is concerned, China continues to be the largest market for Indian exports and any decline in import from India into China results in a negative trend. The council and the exporters are vigorously undertaking marketing efforts in other unexplored markets. Regarding export of fabrics, there is stagnation mainly due to the lack of processing capacity. Export by home textiles sector is doing well, recording positive growth consistently, thanks to new investments and conducive policy measures.
Do you expect the Indian government to expedite the process of FTA with EU in the near future to compete against Pakistan, Vietnam, and Bangladesh?
Yes, the India- EU FTA negotiations are in an advanced stage and once the deal is concluded, India will have a level-playing field with competing Asian countries. In fact, India will be in a better position than others mainly because of self-reliance in the entire value chain, particularly all types of raw materials.
What are your views on the recently launched SAATHI?
The powerloom sector in India is predominantly an unorganised sector, and has a large number of micro and small units which produce 84 per cent of the total cloth (including woven and knitted) in the country. The SAATHI scheme will provide energy-efficient powerlooms to small and medium units at no upfront cost and repay in 4-5 years in instalments. The unit owner is not required to allocate any upfront capital cost to procure these equipment, and nor do they have to allocate additional expenditure for repayment as the repayments are made from the savings that accrue as a result of higher efficiency equipment and cost savings.
Power Tex India, under which plain powerlooms are attached with process control equipment, will also lead to higher productivity, better quality and more than 50 per cent additional value realisation.
These initiatives by the ministry of textiles will encourage more investment in the weaving sector and substantially improve efficiency in fabric manufacturing, particularly in the MSME sector.
What can you predict about prices of cotton in the international market in the near future?
International cotton prices in the near future will be slightly higher than prices in India owing to bettor output estimated in India compared to other cotton producing countries. We do not expect any major volatility in the prices in the near future.
Have Brexit and Trump's presidency had any impact on the export of cotton, yarn, and fabrics?
Brexit is in the initial stage of development as the modalities are being negotiated with the rest of the EU. (Donald) Trump's trade policy is likely to have a very limited impact on India's exports of textiles to the US.
For cotton, competition with polyester is a powerful challenge that is accelerating as chemical fibre production technology results in lower costs of polyester production. How do you think the cotton sector can overcome the challenges posed by polyester fibre?
Production and consumption of cotton v/s synthetics in India is 60:40 whereas worldwide it is the other way around. There is an increasing demand for cotton/synthetic blended textiles and thereby both fibres will continue to hold importance and demand in the value-added textiles and garment business.
What are the latest technological advancements which have helped the cotton industry/sector?
Continuous modernisation, technology upgradation and automation are helping the Indian textiles and clothing sector to perform better in the past few years. Spinning mills are investing in fully automated production system from blowroom to TFO with minimum handling by humans. Application of artificial intelligence in weaving and stitching will lead to higher productivity, zero defects and very low wastage of material at every stage of production process.
How is the cotton arrival compared to this season's production target?
It is reported that 48 per cent of this season's cotton has already arrived in the markets and the overall output for the year is estimated at 377 lakh bales, 9 per cent higher than last year.
Are you taking any steps to promote the India-grown cotton brands Suvin and Suvin Ratna?
The Textile Commissioner's office and Cotton Corporation of India in association with the council and leading trade bodies are undertaking various initiatives, under Mini Mission 3 of the Technology Mission on Cotton (TMC), in promoting branded cotton from India so that farmers would get better remuneration and the retail market gets assured quality standards. These initiatives will focus mainly on few varieties of cotton depending upon their acceptability in global markets.
Any plans for the various cotton institutes - both research and organisational within India to join hands to push /bring in more sustainable means of production and processes?
Sustainable production has become a common norm in the entire value chain, mainly because of various compliances stipulated by the importers/retail chains. Some of the retail chains are planning to focus more on products made of recycled cotton and many chain stores are joining together to implement BCI, etc, are leading to the involvement of various agriculture research institutions in working towards a sustainable production process. (RR)
