Home / Knowledge / News / Textiles / Central Govt to take appropriate steps to protect textile industry, SIMA
Central Govt to take appropriate steps to protect textile industry, SIMA
07
Jul '08
The Indian textile industry, which is going through a bad patch during the last couple of years, is now faced with the problem of very high cotton prices and uncertain supplies.

The factors leading to recession in the textile industry were mainly due to soaring cotton prices, increase in the bank interest rates, high fuel transportation cost, shortage of power and labour.

The textile industry has always been banking on its own good quality cotton for its competitive edge in the global markets.

However, inspite of record bumper crop of 315 lakh bales during the current season as against the requirement of 240 lakh bales during the last year, the cotton prices have almost shot up by 45% and 50%.

All the cotton left the hands of farmers and gone into the hands of multinationals, who in turn have exported cotton to our competitors like China, Pakistan and now dictating terms to the domestic market.

The industry points out that it is not because of the demand and supply, but because of the speculation.

In a press release issued, Dr. K.V.Srinivasan, Chairman, The Southern India Mills' Association has informed that the Association directly and also through its apex body, Confederation of Indian Textile Industry (CITI), made several attempts from the beginning of the cotton season, recommending various remedial measures to be taken by the Government to keep the cotton price under control.

Almost all the Regional Associations of all the sectors also made similar appeals to the Central Government to take appropriate steps to protect the domestic textile industry which provides second largest employment next only to agriculture in the country, particularly for people below the poverty line and rural women folk.

Unfortunately, though the Government including the Hon'ble Prime Minister and other Ministers had been promising to take appropriate steps in various forums, had failed to control the cotton prices.

Therefore, first time in the history of textile industry, all the mills have announced a one-day stoppage of the textile industry protesting against the abnormal hike in cotton prices and entry of multinationals speculating the Indian cotton trade.

SIMA Chief has stated that the steep rise in raw material price has paralysed the working of the entire textile industry with even the top mills incurring heavy cash losses.

He has stated that the untoward development is solely attributed to the speculative activities indulged in by several multinational traders who have entered in the Indian market in a big way this year and acquired the entire supply of good quality cotton not only for export but for selling in the domestic market.

He has criticised the Government for totally neglecting this serious issue. He has further stated that all the farmers have sold their cotton well before January 2008, the multinationals and other traders have purchased the cotton well below Rs. 20,000/- per candy and now selling at Rs.30,000/- per candy.

Must ReadView All

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Mohammad Hassan
Biax Fiberfilm

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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:
May 2017

May 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