Home / Knowledge / News / Textiles / Spinning industry in a morass: NITMA
Spinning industry in a morass: NITMA
21
Jul '16
Indian spinning industry is the most developed segment of the textile and clothing value chain.

It is a global market leader with 30% exportable surplus going to countries across the globe.

There also seems no dearth of incentives from either the centre or state government.

While these facts could be the envy of any sector, industry insiders say excessive and prolonged incentives are proving to be the bane of spinning industry, which is saddled with overcapacity and forced to export at very low costs to keep the units functioning.

Although, it seems to be an industry needing no assistance, as the Government (Central & states) has given it a lot of incentives over the years making it among the best in the world, yet
it has been classified as a “stressed industry” by the banking sector, said Sanjay K Jain, the President of Northern India Textile Mills Association (NITMA).

“The excessive and long term continuation of incentives has been the bane of the industry. It has grown no doubt but more on incentives rather than fundamentals,” Jain said in an article, 'SOS – Yarn spinning companies in distress.'

Spinning mills have had a harrowing experience in the country over the past couple of years despite cotton prices ruling low due to a skewed demand supply imbalance created as a result of opening of new spinning mills in some states (viable due to incentives rather than fundamentals), slow local demand, poor monsoon for two or more years, and overall subdued sentiments in the world.

“Exports too have failed to cheer us up due to the disadvantage created by FTAs or Free trade Agreements of competitors such as China with the big buying nations and we as usual not able to break any ice anywhere,” he said, adding “It's true that spinning industry does not need investment incentives anymore but it surely needs incentives to export”.

Even though the Central government has realized this and put an end to incentives for installing more machinery and mills, some state governments such as Gujarat Maharashtra, Andhra, Rajasthan, and Madhya Pradesh continue to do so at the cost of valuable public money.

It's practically irresistible for one to not invest in spinning capacities, given the unplanned and illogical incentives that state governments are continuing with, he said explaining how the problem gets compounded further due to lack of authentic data on cotton production and available stocks.


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Paolo Ocleppo
Sandvik Hyperion

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Akta Adani
India Boulevard

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

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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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