Home / Knowledge / News / Textiles / Textile sector combats power shortage
Textile sector combats power shortage
07
Nov '08
Textile Mill
Textile Mill
Consumption of cotton by textile mills during the ongoing fiscal is expected to be similar as last year, forecasts Cotton Advisory Board.

Last year country's textile industry consumed 241 lakh bales and in the coming year as per the recent estimate of Cotton Advisory Board, the consumption could be same as the last year, provided the power situation in Tamil Nadu improves.

Available statistics show that the area under cotton cultivation during 2008-09 is around 92.6 lakh hectares compared to 95.55 lakh hectares last year.

In an exclusive conversation, on less consumption of cotton, in the current fiscal, Dr K V Srinivasan, Chairman, Southern India Mills' Association (SIMA), told Fibre2fashion, “There is a global recession for textile business and therefore major manufacturing countries like China, Pakistan, India and Bangladesh are in the process of down sizing their manufacturing activities to the tune of 20 to 30 percent.

Indian textile industry is saddled with factors like steep hike in minimum support price for cotton resulting in high cotton price, hardening of bank interest rate, withdrawal / steep reduction in export incentives, high fuel cost, high transport cost etc, and Tamil Nadu which accounts for almost 47 percent of the spinning capacity consuming around 110 lakh bales of cotton annually is suffering power shortage to the tune of 40 to 50 percent.

“Since there is no symptom of improvement in the power supply position except during the wind season, there will be 20 to 30 percent drop in production during the coming year in Tamil Nadu. Therefore, this reduction could be curtailed only when the Government of Tamil Nadu implements the captive generation model by utilizing the idle capacity of furnace oil and high speed diesel oil generators available with the industrial units on a need basis by reimbursing the additional cost of generation. Therefore, it might result in sizable reduction in the consumption of cotton during the next season by the Indian spinners.”

Recently, price of cotton has gone down. Discussing its impact on the industry, Dr Srinivasan, stated, “Though there is a reduction in the cotton prices due to significant fall in the international cotton price scenario, the abnormal hike in minimum support price for cotton as announced by the Government has seriously affected the market and the textile mills which are already incurring huge cash losses are not in a position to procure the cotton due to severe financial crunch. This is high time the textile industry needs enough support from the State and the Central Governments to create a win-win situation both for the farmers and the textile industry.”

Annual consumption of the textile mills in Tamil Nadu reaches nearly 110 lakh bales of cotton, however, this year, due to severe power shortage, the utilization capacity has gone down drastically.

While sharing his outlook on this, SIMA Chairman lamented, “Currently, Tamil Nadu Electricity Board has announced 40 percent demand cut and energy cut for all the HT consumers. In addition, it has also restricted the power supply for four hours during the peak hours (between 6 pm and 10 pm). Besides, the industrial units are also facing two to three hours unscheduled load shedding resulting in 50 percent production loss. The situation might get worsened during March-April 2009 and might improve only in May when the wind season begins.”

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Top executives
Textile industry

The foremost issue is bridging the skill gap

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Paolo Ocleppo
Sandvik Hyperion

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Akta Adani
India Boulevard

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

October 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
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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