Home / Knowledge / News / Textiles / Textile industry appeals for cotton fibre security
Textile industry appeals for cotton fibre security
30
Sep '16
L-R: Smriti Irani, Vanathi Srinivasan and M Senthilkumar
L-R: Smriti Irani, Vanathi Srinivasan and M Senthilkumar
A pan-India textile industry delegation has urged Union textiles minister Smriti Irani to announce cotton fibre security policy by extending a low cost working capital fund. The policy should also ensure adequate stock to use ratio of cotton to have a level playing field in the globalised environment. India's current stock to use ratio is 12-15 per cent.

The 19-member delegation, which met the Union minister, was led by Tamil Nadu BJP general secretary Vanathi Srinivasan and The Southern India Mills' Association (SIMA) chairman M Senthilkumar. It included representatives from Northern India Textile Mills' Association (NITMA), Rajasthan Textile Mills' Association (RTMA), Tamil Nadu Spinning Mills Association (TASMA), South India Spinners' Association (SISPA), Indian Texpreneurs Federation (ITF), Tirupur Exporters' Association (TEA), Powerloom Development & Export Promotion Council (PDEXCIL), Andhra Pradesh Spinning Mills Association, All India Spinning Mills Association, Tamil Nadu Open End Spinning Mills Association, and All Gujarat Spinners' Association.

The predominantly cotton based Indian textile industry has been facing acute crisis during the last eight years due to high volatility in cotton prices especially during off season starting from May to September. Though the cotton year is October to September, more than 80 per cent of the cotton arrives in the market during November to March. Due to financial constraints and three months credit limit facility extended by the banks, spinning mills are forced to procure high cost cotton for at least five months, the delegation apprised the minister.

The joint memorandum submitted on the basis of collective decision taken by 26 textile associations across the value chain in the country, insisted the government to direct Cotton Corporation of India to procure 70 to 80 lakh bales of cotton during peak season when the Indian cotton price rules lower than the international price, retain cotton as buffer stock and sell this quantity only to the actual users during May to September.

Senthilkumar said that cotton fibre security is very essential as more than 80 per cent of the textile manufacturing units are in the MSME category which provides 35 million jobs directly. He stated that the cotton price which was Rs 33,000 per candy of 355 kg reached almost Rs 50,000 per candy during July 2016 thus increasing the clean cotton price up to Rs 65 per kg while the yarn price increased only by Rs 20 to Rs 30 per kg, thus making the spinning mills to incur Rs 20 to Rs 25 per kg loss during the last three months.

This has caused several hundreds of mills to cut down production by 20-35 per cent throwing lakhs of people out of jobs. Downstream sectors such as handlooms, powerlooms and apparel also incurred huge losses and there was a decline in the export of cotton textiles.

SIMA chairman appealed to the Centre to ensure adequate stock-to-use ratio of 25 per cent, which is currently 12 to 15 per cent in India as against world average of 91 per cent including China and 54 per cent excluding China. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mark Paterson
Technical Absorbents Ltd

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

Johan Berlin
InvestKonsult Sweden AB

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

Rupa Sood and Sharan Apparao
Nayaab

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

Aditi Somani
Aditi Somani

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do 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

July 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

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X