Home / Knowledge / News / Textiles / Sops give marginal relief to spinners, Mr Thulasidharan
Sops give marginal relief to spinners, Mr Thulasidharan
16
Jul '08
The recent removal of import duty of 10% and special CVD of 4% on cotton has given only a marginal relief to the Indian spinners by creating a level playing field in the globalised environment, reacted Mr J Thulasidharan, Deputy Chairman, SIMA on the recent government measures.

In a Press Release issued, Mr Thulsidharan opined that though steps taken by the government were in the right direction, these steps have eased out the local cotton price only marginally i.e., to the extent of Rs.500-750 per candy and still, the Indian cotton is costlier than the imported cotton.

The Indian cotton prices have been speculated very abnormally during the current cotton season, from Rs.19,000/- to Rs.30,000/-, a candy of 355 kgs.

Therefore, the woes of the Indian cotton textile industry have not been fully addressed. Portraying the cotton price increase during the current cotton season for S-6 cotton variety, Mr Thulasidharan pointed out that the increase was over 58% mainly due to the huge exports of cotton.

At its meeting held on January 11, 2008, the Cotton Advisory Board (CAB), Ministry of Textiles, Government of India, earmarked 65 lakh bales for exports and estimated 310 lakh bales as the total production during the cotton season 2007-08 as against 58 lakh bales of cotton export during the previous season.

Mr Thulsidharan has stated that over 100 lakh bales have been exported as against 65 lakh bales of CAB estimate depleting the cotton stock-to-use ratio less than 18% as against 42% level maintained by the competing countries like China.

Mr Thulsidharan has felt that it is unfortunate that the multinationals cotton traders commanding the Indian cotton business, covered large volume of cotton who are able to get unlimited finance at less than 3% interest rate as against 2 to 2.5 months working capital loan availability to the Indian spinner at 15% interest rate.

He further cited that the escalated cotton prices, though pushed the Indian spinners into heavy cash losses, considering the recessionary trends prevailing in the industry, they could not pass on fully the escalated cotton prices.

Mr Thulasidharan said besides the cotton, the various other input costs like transport, fuel, labour, high bank interest rates, etc, also shot up abnormally.

Tamil Nadu, which accounts for more than 47% country's spinning capacity, was plagued with acute power shortage during the cotton season and the machinery capacity utilisation dropped over 30% in most of the spinning mills thus sky rocketing the cost of production.

Table 1 and 2 highlight the cotton cost, yarn manufacturing cost, yarn price and the margins for producing the major hosiery yarns using S-6 cotton.

While admitting that the prices of yarn have gone up by 17% during the current cotton season, he pointed out that the cotton prices have gone up by 39%.

Even in absolute terms, the clean cotton price has gone up by Rs.23 per kg, whereas, the yarn price has gone up by only Rs.19 per kg.


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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