Home / Knowledge / News / Textiles / Cheap Chinese imports impede growth of textile sector
Cheap Chinese imports impede growth of textile sector
09
Jul '08
The textile sector in Uganda has for some time been struggling due to the absence of a formal Government policy for the industry. However, last year, the country unveiled a new industrial policy, warranting the development of a cotton and textile sector for Uganda within the broader frame work of the present one.

Mr Richard Mubiru, Director Corporate Affairs of Southern Range Nyanza Limited, told Fibre2fashion, “Due to the missing policy regime necessary for optimal capacity utilization and competitiveness, the hitherto blossoming sector has, as few as two functional textile mills, following the closure of several others like MULCO, ATM, Lira Spinning Mill, Rayon Textiles. The key problem over time has been the illicit trade orchestrated by largely Chinese traders who took advantage of porous boarders to wreck havoc.”

Southern Range Nyanza Limited is a local textile manufacturer largely producing bed sheets, dress materials, local kitenge prints, shorts, security shirts and pants, blouses, skirts, Heney shirts, school and army uniforms and caps.

Presently the firm has sh2 billion worth of goods lying unsold due to cheap imports. High Cost of production have resulted in prices of dumped textiles becoming lower compared to the locally produced goods. It is therefore quite evident that if importation of inferior textile materials persists, the firm would have to close down due to lack of business.

However, players in the sector have been quite innovative to mitigate the challenges of illicit trade by venturing into production of organic cotton value added goods targeting especially the export markets since Uganda is the 7th Global Producer of Organic Cotton.

Across the value chain (from cotton growing to garments production), the sector presently supports the livelihood of 2.5 million people, representing close to 10 percent of Uganda's population. This could even double with optimal capacity utilization and increase in value addition across the value chain, which is why a High Level Task Force has been established to fast track the formation of Textile Policy within a delay of no more than three months.

Uganda is presently driving the agenda of sensitive categorization of textiles within the East African Community so that the sector can have measures beyond the present tariffs available to mitigate the excesses injury inflicted upon the sector. In this, imported textiles would be subjected to payment of duties based on weight in addition to having in place minimum dutiable values below which declarations are not permissible. This approach has yielded results for sugar and rice and should therefore deliver the same for cotton and textile sector in East Africa.

Fibre2fashion News Desk - India


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Urmil Arya

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

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

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

Silvia Venturini Fendi
Fendi s.r.l

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

December 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

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
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

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
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

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
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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