;
Home / Knowledge / News / Textiles / Synthetic & blended yarn spinning industry in dire straits
Synthetic & blended yarn spinning industry in dire straits
18
Jul '08
Mr. V.K. Ladia, President, ISA (Indian Spinners' Association) has, in a press note issued, stated that the blended and synthetic yarn spinning industry is squeezed between galloping input costs and uneconomic prices of their output, namely, blended and synthetic yarn.

The situation is extremely critical and unless immediate relief is rushed by abolition of import duties and reduction in excise duties on raw materials of the spinning industry, the bleak prospect of imminent closure is staring in the face of the industry.

Referring to the importance of the blended yarn spinning industry in the national economy, Mr. Ladia has observed that there are about 200 mills manufacturing blended and synthetic yarn.

In 2007-2008, out of the total spun yarn production in the country of 3990 million kg, the share of blended and synthetic yarn was 1309 million kg, accounting for 26%. Thus, the blended yarn spinners account for a little more than a quarter of the textile industry in the country.

Obviously, if such a big segment of the industry is in dire financial straits, it will not be possible for the textile industry to achieve the target of creating additional 17.4 million jobs by 2012.

Explaining the critical situation of the industry, Mr. Ladia has, by way of example, referred to profitability results of five leading man-made spinning and weaving industries and stated that there has been practically total erosion of net profits in 2007-2008 with mills reporting a decline in profits by 80 to 99%.

The downslide has further accelerated since April-June 2008 and many leading mills are reporting heavy cash losses. The plight of marginal mills is extremely pitiable and they are gasping for the breath.

Cost escalation:
The devastation of the industry is taking place because raw material prices have gone through the roof. The behavior of domestic price of polyester staple fibre in the recent period has been as under:

Click here to view more:

Prices of polyester staple fibre have, no doubt, influenced by skyrocketing of crude oil prices. However, because of the peculiar method of domestic producers to fix price on import parity basis, which gives additional price boost of 28% of FOB price due to the impact of import duty, SAD, CVD, freight and other charges, the domestic price of polyester staple fibre works out much higher than in other competing countries.

For example, prices of polyester staple fibre in China are lower at least by Rs.10/- per kg. Thus, the blended yarn spinners in India are at great disadvantage.

In June 2008, Government has totally abolished import duty on crude oil. Since the downstream industries are unable to absorb the tremendous shock of high crude oil prices, inasmuch as their inputs are crude oil-based, it is necessary to waive import duties on all downstream industries and particularly on polyester staple fibre.

Recently, import duty on cotton has been abolished and hence, abolition of import duty on man-made fibres is imperative for the point of parity.


Must ReadView All

Japanese capital pouring into textile, garments in Vietnam

Apparel/Garments | On 12th Dec 2018

Japanese capital pouring into textile, garments in Vietnam

Several Japanese companies, including Itochu and Sakai Amiori, are...

Chanel bans fur, exotic animal skins in its products

Fashion | On 12th Dec 2018

Chanel bans fur, exotic animal skins in its products

French fashion retailer Chanel recently announced it will stop using...

Apparel, footwear brands failing to tackle exploitation

Apparel/Garments | On 12th Dec 2018

Apparel, footwear brands failing to tackle exploitation

Apparel and footwear firms are failing to tackle exploitation of...

Interviews View All

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Will Qian,

Will Qian

Honghua Digital Technology Stock Co., Ltd. specialises in the R&D,...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Vikram Saria,

Vikram Saria

Shanghai-based Aura Designs Ltd is a leading manufacturer of textile and...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

Leave your Comments


December 2018

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

news category


Related Categories:

Advanced Search