Home / Knowledge / News / Textiles / CITI urges ministers to take steps to avoid collapse of industry
CITI urges ministers to take steps to avoid collapse of industry
01
Jul '08
Textile and clothing industry has urged the Government to take immediate steps including abolition of import duty on cotton, to prevent the collapse of the sector because of the crisis that is looming large on account of the runaway increase in cotton prices.

In meetings with the Union Ministers of Textiles, Finance and Commerce, they pointed out that cotton prices in the country increased by over 35 percent during the last one year and this vital raw material has disappeared from the market because of speculative operations of international traders.

“The textile and clothing industry is going through a serious crisis because of the spiraling increase in cotton prices and the unabated increase in prices of cotton will be deleterious to the economy in general and the textile sector in particular, which has already eroded its exports competitiveness on account of the appreciating rupee.

The series of onslaughts being faced by the industry will cripple its growth and employment generation potential,” said Mr. P D Patodia, Chairman, Confederation of Indian Textile Industry (CITI) while addressing the press in New Delhi.

He stated that a textile and clothing delegation has met the Union Ministers of Finance, Commerce and Textiles and apprised them of the grave situation that is enveloping the textile industry and suggested remedial measures.

CITI has also taken up the issue with the Prime Minister recently, highlighting the need for urgent measures for moderating input costs, especially cotton prices.

The textile delegation has pointed out in their interface with ministers that the price increase in cotton in the domestic market is basically because of the uncontrolled export of cotton.

The official figures put cotton exports for the current year at 85 lakh bales as against 58 lakhs bales last year. However, the industry estimates indicate that actual exports during the current cotton year would surpass one crore bales, aggravating the present situation.

The report that there is heavy hoarding of cotton by international traders is a matter of great concern. With cheap availability of credit at LIBOR, such traders can manipulate the supply positions, further hiking up the cotton prices.

“The anomaly is that even at higher prices, textile mills are not be able to get cotton at the required quantity, which will force them to cut back the production,” said Mr. Patodia, adding that any production loss in the textile sector will have serious impact on employment generation in the country.

Explaining the specific recommendations that the CITI delegation has placed before the Union Ministers and the Prime Minister, Shri Patodia and other industry leaders who addressed the press stated that their suggestions take into account the interests of the farmers and Indian cotton traders, in addition to those of the textile sector and the economy as a whole.

The following are the major suggestions made:
- Custom duty of 10% and Additional Custom Duty of 4% applicable to import of cotton should be withdrawn immediately, so that cotton can be sourced by the Industry from wherever it is available at affordable prices.

- A mechanism may be evolved for assessing the cotton needs of Indian textile industry periodically and permit export of cotton only to the extent of exportable surplus available. The assessment can be done by Government's Cotton Advisory Board on a quarterly basis and quantities may be released for exports for each quarter on the basis of this assessment.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Karel Williams
Dow Microbial Control

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X