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

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Wendell Rodricks
Wendell Rodricks

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

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

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

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


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