Home / Knowledge / News / Textiles / High MSP responsible for current crisis in textiles sector – CITI
High MSP responsible for current crisis in textiles sector – CITI
15
Dec '08
Mr D K Nair, Secretary General, CITI
Mr D K Nair, Secretary General, CITI
Output of textile sector for the month of October registered a fall of 9.6 percent. The wool, silk and man-made fibre textiles category plunged 4.8 percent, while the textile products (including apparel) category showcased a decline of 4.6 percent.

Industry experts attribute sharp hike in minimum support price (MSP) for cotton and sluggish exports, responsible for the present deterioration.

“Unreasonably high MSP announced by Government for cotton year 2008-09 have played a major role in precipitating the current crisis in the textiles and clothing industry. Our cotton prices are now 15-20 percent above international prices. This would mean that we cannot export either cotton or cotton textiles competitively! Cotton consumption is therefore likely to decline. Thus, the MSP will not only prove to be against the interest of the textile industry but also the long term interest of cotton farmers,” told Mr D K Nair, Secretary General, Confederation of India Textile Industry (CITI), to Fibre2fashion.com.

What has made the matter worse is when prices in global markets are declining, domestic rates for cotton has skyrocketed and this has affected the whole down stream chain.

Because of this India is losing its share, especially in the US market, and increasing competition from countries like Vietnam and Bangladesh, is making it hard further.

Talking about measures Government should take to control the disparity in Cotton Prices in comparison to international prices, the CITI General Secretary stressed, “Since revising MSP, which is the logical step, may not be politically feasible, what Government can now do to mitigate the situation created by the MSP, is to ensure that cotton procured at MSP is promptly disposed of to mills at international prices.

"Additionally, mills can be enabled to buy cotton by relaxing the interest rate, margin money requirement and time period for working capital provided to mills for purchasing and stocking of cotton.”

For latest IIP (index of industrial production) data of the textile industry click here

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Apparel/Garments | On 19th Jan 2017

Asahi Kasei to display sustainable fibre at trade shows

Asahi Kasei, specialty Japanese fibre producer, will be displaying...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Karan Toshniwal
Orange O Tec

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

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search