Home / Knowledge / News / Textiles / SIMA appeals for a fair cotton trade policy
SIMA appeals for a fair cotton trade policy
14
Oct '11
The predominantly cotton based Indian textile industry has incurred a loss of over Rs.15,000 crores during the current financial year and even the best performing textile companies are incurring huge cash losses due to high volatility in the cotton and yarn prices.

The synthetic fibre manufacturers also maintain parity with the cotton prices resulting in the synthetic textile industry to incur cash losses. A levy of 10% duty on branded readymade garments and made-ups and duty free access agreement entered with Bangladesh have added the woes of the Indian textile industry threatening its very survival.

The textile industry has already appealed for a financial restructuring package to the Reserve Bank of India, Finance Ministry, Commerce & Industry Ministry and Textile Ministry to avoid gross NPAs / BIFR of textile units. The Hon'ble Union Minister of Commerce, Industry and Textiles has convened a meeting of all stakeholders, including officials from Finance Ministry, RBI, DGFT, etc., on 11th October, 2011 at New Delhi to understand the gravity of the problem.

The Hon'ble Minister was very positive in helping to revive the ailing textile industry on a fast track mode from the recession. During the meeting, CITI and SIMA appealed to the Hon'ble Minister to ensure raw material price stability and a level playing field in pricing and cost of funding to minimize the losses incurred by the industry and also face the stiff challenges posed by the competing countries in the open market.

In a Press Release issued here, Mr.S.Dinakaran, Chairman, The Southern India Mills' Association (SIMA) has informed that the Association has proposed for Rs.2500/- per tonne as freight equalization tax on cotton export, as the mills in India spend higher transportation cost than the textile mills in China, Bangladesh and other competing countries.

He has stated that the transportation cost for cotton has substantially gone up due to abnormal increase in the diesel price and the textiles mills have to procure more than 75% of the cotton from up country States like Gujarat and Maharashtra whereas, the mills in China, Bangladesh and other competing countries are able to carry the raw cotton in foreign vessel through sea route and able to transport at less than 40% of the transportation cost spent by the mills in South India.

SIMA Chief has stated that textile mills in Tamilnadu accounts for 47% of the cotton consumed in the country produces less than 3% of its requirement within the State and procures more than 75% of the cotton from up country States like Gujarat and Maharashtra.

He has opined that it is very essential for the Government to frame the cotton export policy in such a way that our competing countries do not derive competitive advantage from Indian cotton. He has pointed out that the Parliament has already passed a Bill to levy up to Rs.10,000/- per tonne so as to create a level playing field in the open market.


Must ReadView All

Turkish-Algerian JV to set up textile unit in Relizane

Textiles | On 17th Jan 2018

Turkish-Algerian JV to set up textile unit in Relizane

Construction of one of Africa's largest textile production...

Courtesy: Indorama Ventures

Textiles | On 17th Jan 2018

IVL, Huvis to enter JV for Low Melting Fibre plant in US

Indorama Ventures Limited (IVL), a global chemical producer, and...

Future Group to set up garment manufacturing in Bengal

Apparel/Garments | On 17th Jan 2018

Future Group to set up garment manufacturing in Bengal

Kishore Biyani-led Future Group is going to set up a garment...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Urmil Arya

Sushila International, a well established textile organisation established ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search