The Indian textile industry started reviving from the beginning of the year and more so in the recent past due to the increase in demand for cotton fabrics & made-ups textiles in the domestic & the international markets. The industry faced the worst ever crisis during the year 2010-11 due to the high volatility in the cotton prices, acute power shortage and glut in the domestic & international markets.
In order to help the industry, on 29th May, 2012, the government announced a debt restructuring package of Rs.35000 crores to reduce the stress and to revive the industry from the crisis. But the banks still await for the directions from the Government for implementing the package.
In a press release, Mr. S. Dinakaran, Chairman, South Indian Maharashtrian Association (SIMA) has stated that the demand for the fabrics & made ups has increased that enabled the textile industry across the value chain to stabilise its performance. He has stated that majority of the textile units in the country started breaking even after a long time in spite of abnormal increase in the costs of power, transport, labour and also cotton.
The price of Shankar-6, the predominant cotton variety has increased from Rs.91 per kg during June 2012 to Rs.107 per kg by the end of August 2012. During the same period the Hank Yarn price for 40s (40s carded hank yarn, 40s carded warp yarn and 40s combed hosiery yarn) has increased from Rs.222 to Rs.226 per kg; warp yarn of Rs.205 to Rs.215 per kg and in the case of 40s Hosiery it has increased Rs.221 to Rs.228 per kg.
Mr. Dinakaran has stated that the yarn prices are stable for the last three months inspite of substantial increase in the cost of production and the industry is able to breakeven due to improved capacity utilisation and demand.
He has added that the made-up textile exports to the US increased by 18% during the first six months of the year 2012 when compared to the exports done during the same period last year. He has also said that the festival season demand has improved the domestic fabric requirements substantially.
SIMA Chief has appealed to the Ministry of Textiles & the Ministry of Finance to expedite the implementation of the debt restructuring package including passing a necessary resolution by the Cabinet enabling the NPA units covered under debt restructuring package to become eligible for TUF subsidy to sustain the viability of such events.
Mr. Dinakaran has also stated that the Indian cotton textile industry would continue performing better by taking advantage of cutback in cotton textiles production by the countries like China.
South Indian Maharashtrian Association (SIMA)