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Cotton quality & price decide financials of textile mills
Aug '14
Mr. RS Jalan
Mr. RS Jalan
Capturing and buying good quality raw cotton at the right price is one of the important factors, which determines the financial performance of a textile mill, a top honcho at a vertically integrated textile mill tells fibre2fashion.

Speaking exclusively to fibre2fashion, RS Jalan, MD of GHCL Ltd, which manufactures and exports premium quality yarn, griege fabric and home textiles discussed the contentious issue of supply of good quality cotton and various challenges facing the textile sector.

He said, “In recent years, supply of cotton has become an issue due to frequent policy changes by the government especially on export of cotton. This policy deficiency has led to exporting of good quality cotton at cheaper price during cotton season and importing cotton at higher price at a later date.

“Indian mills are deprived of the right quality of cotton along with the right price. Sizable capacity of spinning mills in southern India produces fine and super fine counts and hence there is always an issue in getting the right quality cotton.

“Since the focus is on Bt cotton for long staple cotton varieties, the length of cotton fibres has come down and micronaire value has gone up, which seriously affects the working, when spinning fine count yarn. We need to give quicker and stronger push to improve the quality of long staple cotton varieties.

“Government has to extend support to the textile industry in the form of interest subsidy for working capital requirement to purchase raw cotton during the season, in order to compete with multinational trading community.”

When quizzed on status of Indian cotton in global markets, he informed, “India is only the country where numerous varieties of cotton are cultivated which help produce wide ranges of yarn counts ranging from very coarse to super fine. However, there are issues like quality in terms of adulteration/mix-up and high contamination which needs to be addressed.

“In the international market, Indian cotton is given least preference for producing high-end textiles mainly, due to serious contamination problems. However, in the current crop season, cotton export registration has touched 9.5 million bales, out of which around 9.2 million bales have already been shipped.”

Click here to read the whole interview.

Fibre2fashion News Desk - India

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