Ivanovo Governor seeks support for textile industry

21 Jul '12

2 min read

Mikhail Men, the Governor of the Russian province of Ivanovo, presented a report seeking support for domestic textiles industry under Russia’s WTO membership, during the meeting of the Federation Council Committee on Economic Policy in Moscow.

The report gains significance in view of the scheduled accession of Russia to the WTO next month, since the Duma ratified the same last week.

Stating that the textile industries catering to local demand would be in the least favourable situation after Russia’s accession to the WTO, Mr. Men said that this may lead to serious problems for the regions where these industries are concentrated.

As far as the Ivanovo region is concerned, there is large-scale concentration of textile firms, which would face severe price competition with imported products. If the Russian Government does not initiate steps to support local manufacturers, the Russian textile industry may experience a drastic fall, he said.

Mr. Men said that emphasis should be laid on supporting the basic, large-scale textile enterprises. He said that the Ivanovo region houses many companies, which create textile industrial cluster around themselves. These companies should focus on growth as it would help the local industry to grow into a highly competitive innovative industry.

The Governor also suggested construction of a synthetic fibre factory in the region.

Talking about additional supportive measures for the sector, he proposed making provision of state guarantees for implementation of complex ground-breaking projects in textiles.

Stating that the budgets are utilized to reimburse a part of the sum spent by the firms on raw material and equipments, the Governor proposed making provision of subsidies for organization of textile industries from the Federal Budget for 2013-17, to compensate the costs of heat and energy resources endured by these firms.

Lastly, Mr. Men said that leading textile industry players do not see any drawbacks in Russia's WTO membership. It is because the country never enjoyed a real competitive advantage in terms of development of textile industry. May it be raw materials, yarn or equipments, Russian entrepreneurs pay the same price as their overseas rivals, he added.

He said that if support measures are decided and related issues are sorted out, Russia’s WTO accession may extend a solid assurance for sustenance of the country’s textile industry.

Fibre2fashion News Desk - India

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