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

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Rikesh Mistry

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

Hardik Sanghvi

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

Ravindra Jain, Ashish Baid

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

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...

Paolo Ocleppo
Sandvik Hyperion

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Nisha Chanda
Whistling Woods International School of Fashion

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

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
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

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
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

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
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


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