Home / Knowledge / News / Textiles / An outlook for the Russian textile industry at ICAC's conference
An outlook for the Russian textile industry at ICAC's conference
17
Jun '10
An international conference under the theme: “Textile Industry and National Strategies for Sustaining Global Competitiveness” was held on May 18, 2010 in Moscow, Russia. The Ministry of Economic Development of the Russian Federation, the Secretariat of the ICAC and the Russian Cotton Association organized the conference. Representatives of the Ministry of Industry and Trade, Russian Union of Textile and Light Industry Businessmen, and representatives of the textile and cotton industries from Russia, Central Asia and other countries participated in the conference.

The conference focused on strategies for sustaining competitiveness of the cotton textile and garment industries, the role of government support to the industry and an outlook for the Russian textile industry.

According to participants, the biggest constraint faced by Russian mills is the tight credit needed to modernize equipment. Textile companies often do not have enough collateral to qualify for commercial loans to update machinery. Textile companies would like government quarantines to facilitate credit for purposes of modernization in order to improve competitiveness. Russian mills would also like government support for training of textile workers, as qualified labor becomes scarce and mills do not have enough facilities and resources to undertake training programs.

Factors that are negatively affecting the Russian textile industry include trade protection, duties on exports, illegal imports, unfair competition by importers because of smuggling and false documentation in order to evade tariffs. Yarn imports from Turkmenistan and Uzbekistan are rising, and both governments are supporting their textile industries with subsidized cotton and new equipment. Cotton yarn from Turkmenistan sells in Russia at prices lower than the cost of cotton delivered to Russian mills.

An estimated 30% of net domestic textile consumption is produced in Russia and 70% is imported, and an estimated 45% of imported textiles and apparel are smuggled. Total Russian textile market value is estimated at $7-$10 billion. Most Russian mills are producing for domestic markets, and the share of military orders, including uniforms and heavy canvas, remains high. Military procurement is expected to sustain domestic production in the future. However, military purchases are not stable affecting mills' use of capacities. Exports of textiles from Russia were expanding into Europe during the 2000s, aided by a weaker ruble, but are declining currently because of contracting textile demand in Europe. There are still substantial cut & sew operations in Russia, and textile companies from Europe are looking for opportunities for joint ventures in the production and retail sale of textiles and apparel in Russia.

Russian imports of cotton originate mostly from Uzbekistan, Tajikistan and Turkmenistan. Mill use in Russia declined in 2009 and was estimated at 190,000 tons, down from 240,000 tons in 2008. Uzbekistan accounted for only 23% of cotton imports in 2009 and Kazakhstan is now the largest supplier to Russia. The decline in the ruble may reduce imports of yarn and could lead to higher cotton mill use in the future.


Must ReadView All

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

3 African nations may face AGOA sanctions if Mitumba banned

Apparel/Garments | On 19th Feb 2018

3 African nations may face AGOA sanctions if Mitumba banned

Rwanda, Tanzania and Uganda will face US trade penalties, including...

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Apparel/Garments | On 19th Feb 2018

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Two top Uttar Pradesh government officials visited Tamil Nadu’s...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts
Eurofibers

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

February 2018

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
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

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
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

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
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

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
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


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