SIMA: Appropriate technology to help Indian textile sector

19 Sep '12

2 min read

Fifty third Annual General Meeting of South India Mills' Association (SIMA) was addressed by Chairman Mr. S. Dinakaran.

Meeting speech of Mr. S. Dinakaran:

The year 2011-12 witnessed a significant slowdown in textile production mainly due to the high volatility in raw material prices, erosion of working capital, slowdown in demand, acute power shortage in the States of Tamil Nadu and Andhra Pradesh, etc. Majority of the textile mills in the country faced most difficult times in their history.

The government had to announce a financial debt restructuring package of Rs.35,000 crores to sustain the survival of several hundreds of textile units consequent to concerted efforts made by the Association directly and also through CITI. Simultaneously, the increased demand for the textile products has enabled the industry to break even and now, there are signs of recovery.

We have already sent the Annual Report of the Association to all our member mills in a CD form detailing the performance of the industry, various challenges faced by the industry and the role played by the Association in resolving the issues. Hence, I shall briefly highlight about the performance, challenges and the actions taken by the Association.

During the cotton season 2011-12, the global cotton production was 27.16 million tonnes which was 8.2% higher than the previous year while the consumption was 22.74 million tonnes which was 7.1% lower than the previous year. The closing stock increased to 13.79 million tonnes which was 48.2% higher than the previous year and stock-to-use ratio was at 62%, the highest since mid 1980s.

For the global cotton season 2012-13, the production has been estimated at 24.87 million tonnes, around 8% lower than 2011-12 cotton season. The consumption has been estimated at 23.53 million tonnes, around 3% higher than the previous season. The global import is estimated to be at 8.10 million tonnes, around 16% lower than the previous year. USDA has stated that the surging yarn imports by China might be the main reason for lower cotton imports.

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The textile industry needs a renewed belief and confidence in the medium and long term. Appropriate technology aiming at value addition coupled with prudent financial management, innovative branding and marketing are essential to achieve a sustained growth.

South India Mills' Association (SIMA)

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