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

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Lynda Kelly
Suominen Corporation

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

July 2017

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

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

Yes No

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

Yes No

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


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



X