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“Allow 1280mn kgs of cotton yarn exports” – NITMA
Apr '11
Mr Ashish Bagrodia, outgoing President of the Northern Textile Mills' Association (NITMA) urged the Textile Commissioner to increase ceiling on export of cotton yarn to a minimum of 1,280 million kgs for the current fiscal year.

Mr Mukund Choudhary, Managing Director - Spentex Industries, has succeeded Mr Bagrodia as the new NITMA President.

He said that, in order to safeguard the spinning mills from incurring losses and closure, it is necessary that the cotton yarn export ceiling for the current 2011-12 fiscal be raised to a minimum of 1280 million kg. He further said that, this would even enable the sector to go all-out to attain country's ambitious goal of doubling its exports by 2015.

Cotton yarn exports were quantitatively capped at 720 million kgs by the government during last fiscal year.

He said, “3.5 million new spindles and 50 lakh rotors would be installed this year, which according to the calculation of the average count based on the statistics released by the Textile Commissioner, would mean an additional production of around 500 million kgs, thus bringing the sector's overall production for the current financial year to 4000 million kgs”.

However, the Office of the Textile Commissioner has arrived at a figure of 3,931 million kgs, he said.

As revealed by the official statistics released by the Textile Commissioner, four million new spindles were added to the installed capacity during December last year, coupled with which, cotton yarn production grew at a steady rate of 13 percent during the initial 10 months of last fiscal.

The former NITMA official stated that, considering the above data, India's overall cotton yarn output for 2010-11 fiscal should be 3,540 million kgs, up 15 percent over the previous fiscal year. However, the Cotton Yarn Advisory Board (CYAB) finalized the same at 3,510 million kgs.

“However, the government surprisingly has taken the consumption rise at 30 percent and finalized the consumption figures at 1,205 million kgs in 2010-11 as against 928 million kgs in 2009-10”, he said.

There is certainly no rationalization for such a rise, particularly when the Textile Commissioner Office's statistics itself portrays a rise of just 14 percent to 928 million kgs in 2010-11 over 814 million kgs in its previous fiscal, he added by saying.

“Moreover, a 30 percent rise in consumption in a year is something extraordinary and would certainly necessitate introduction of additional machinery and manpower, but then there are no substantiation as regards installation of that many powerlooms in any of the regions”, he observed.

Lastly, he even went to the extent of saying that, during the current financial year, cotton yarn consumption in the sector may not even rise at a rate equal to last year's, as many of the powerlooms have switched to synthetic, spun and filament yarns, which leads one to consider these consumption dataas illogical, he concluded by saying.

Fibre2fashion News Desk - India

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