Interviews
New fabric combination may help textile industry – TEA President
18 Sep '08
3 min read
Indian textile industry had been reeling under pressures like appreciation of rupee, rising input cost and energy prices, and incessant power cuts. These factors are responsible for putting a dent in the export earning of the Tirupur textile sector.
A recent study is evidence of this fact that knitwear exports fell around 10 to 15 percent in the last fiscal. Experts are of the opinion that due to rise of rupee value, exporters are finding it difficult to attain even 5 percent growth.
The situation became even more complicated with the announcement of increase in MSP of cotton by the Union Government. It has also withdrawn a subsidy of 2 percent of interest on export credit and slashed duty drawback rates for cotton knitted garments from 11 to 8 percent. Duty drawbacks enable exporters to obtain a refund of customs duty.
In an exclusive interview with Fibre2fashion, Mr Shaktivel, President of Tirupur Exporter Association and Chairman of Poppy's Knitwear Pvt, told, “Our Government is trying to eradicate the problems faced by the industry. Due to depreciation of rupee against dollar in recent period, though sustainability may not be known, the Government strongly feels the industry would get revived. Unfortunately, the Duty Drawback rates have also been reduced and the interest subvention which was announced till March 2009 was cut down to September 31, 2008.”
Discussing about the introduction of new blended fabrics with jute, the TEA president stated, “The introduction of new fabric combination will help the industry but as of now, the usage of blended fabric with jute in the garment units is not quite significant and therefore at this moment, we could not claim the role of the concerned fabric combination for sustaining the industry.”
Organically grown cotton has seen an increased demand in the international market in the years. In this regard, Mr Shakthivel said, “The response for the garments made out of orgnically grown cotton in the international market is quite good and more number of units have started manufacturing this garments and we feel that these garments will have a 10 percent share in total Tirupur exports.”
International companies like Nike, Adidas, Cutter and Buck, Wal-Mart and Van Heusen are the consumers of Tirupur made products. The textile town, houses over 6,000 units for knitting, dyeing, garment manufacturing, printing, embroidery and engages around 350,000 workers.
A recent study is evidence of this fact that knitwear exports fell around 10 to 15 percent in the last fiscal. Experts are of the opinion that due to rise of rupee value, exporters are finding it difficult to attain even 5 percent growth.
The situation became even more complicated with the announcement of increase in MSP of cotton by the Union Government. It has also withdrawn a subsidy of 2 percent of interest on export credit and slashed duty drawback rates for cotton knitted garments from 11 to 8 percent. Duty drawbacks enable exporters to obtain a refund of customs duty.
In an exclusive interview with Fibre2fashion, Mr Shaktivel, President of Tirupur Exporter Association and Chairman of Poppy's Knitwear Pvt, told, “Our Government is trying to eradicate the problems faced by the industry. Due to depreciation of rupee against dollar in recent period, though sustainability may not be known, the Government strongly feels the industry would get revived. Unfortunately, the Duty Drawback rates have also been reduced and the interest subvention which was announced till March 2009 was cut down to September 31, 2008.”
Discussing about the introduction of new blended fabrics with jute, the TEA president stated, “The introduction of new fabric combination will help the industry but as of now, the usage of blended fabric with jute in the garment units is not quite significant and therefore at this moment, we could not claim the role of the concerned fabric combination for sustaining the industry.”
Organically grown cotton has seen an increased demand in the international market in the years. In this regard, Mr Shakthivel said, “The response for the garments made out of orgnically grown cotton in the international market is quite good and more number of units have started manufacturing this garments and we feel that these garments will have a 10 percent share in total Tirupur exports.”
International companies like Nike, Adidas, Cutter and Buck, Wal-Mart and Van Heusen are the consumers of Tirupur made products. The textile town, houses over 6,000 units for knitting, dyeing, garment manufacturing, printing, embroidery and engages around 350,000 workers.
Fibre2fashion News Desk - India
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