Interviews
SICA pleads government to save cotton industry
01 Oct '08
7 min read
At present, due to global recession, import enquiries are much lesser. But if Indian prices decline and international prices are high, there may be large scale exports again.
The Cotton Technology Mission through Mini Mission IV (MM-IV) has come to an end and there is a demand from many parts of the country, for continuing the scheme for a further period of 5 years.
SICA has also represented to the Government in this respect and is actively pursuing the matter. So far, this has been effective only in the State of Gujarat and partially, in other States.
The quantitative and qualitative improvement in cotton crop witnessed in the state of Gujarat is very impressive. Today a marked improvement is noted in cotton grown in Punjab, Haryana, Maharashtra, Andhra Pradesh, Madhya Pradesh states also, where ginning and pressing factories have used this scheme.
The crop is also increasing in other states. The supply of good quality genetically modified seeds, viz. BT Cotton hybrids, and ably complimented by improved ginning practices have resulted in quantum jump in the yield.
Many other problems have not yet been solved and need urgent attention. They are the absence of defined grading practices, presence of contaminants, non-standard packing of bales which do not compare with world packing standards, adverse and expensive transportation logistics, lack of uniform classing including HVI instrumentation classing etc. Andhra Pradesh and Karnataka particularly are taking efforts to increase the crop in a big way. The continuation of the scheme will help these states.
SIMA had last year called for the rationalization of trucking costs on transport of cotton. Cotton has to be transported in large volumes to the Spinning Mills in this part of the country at great cost.
The costs like truck freight are going up due to increasing fuel prices and other costs. These increasing transportation costs will ultimately lead to increase in costs. Hence this issue has to be studied by the government and the mills should be compensated suitably.
The Textile Industry, particularly the spinning sector is facing the situation of high cotton prices and low realizations, thereby leading to continuous losses. The liquidity position has also become tight, following the Govt. policies of hiking interest rates.
The government had decided a few months ago to waive loans to the tune of 70000 crores of the framers of the country. Today the spinning industry is struggling to meet their commitments and need substantial relief, by way of additional finances and lower interest rates. They should be able to buy their cotton requirements during the marketing season and provide much needed support to the cotton growers.
The Textile Industry's requirements should be provided in full, to make them financially strong. The global recession, the volatility of the Rupee and the happenings in developed economies like USA should be taken as strong clues and our textile economy should be insulated by the Government.
The Cotton Technology Mission through Mini Mission IV (MM-IV) has come to an end and there is a demand from many parts of the country, for continuing the scheme for a further period of 5 years.
SICA has also represented to the Government in this respect and is actively pursuing the matter. So far, this has been effective only in the State of Gujarat and partially, in other States.
The quantitative and qualitative improvement in cotton crop witnessed in the state of Gujarat is very impressive. Today a marked improvement is noted in cotton grown in Punjab, Haryana, Maharashtra, Andhra Pradesh, Madhya Pradesh states also, where ginning and pressing factories have used this scheme.
The crop is also increasing in other states. The supply of good quality genetically modified seeds, viz. BT Cotton hybrids, and ably complimented by improved ginning practices have resulted in quantum jump in the yield.
Many other problems have not yet been solved and need urgent attention. They are the absence of defined grading practices, presence of contaminants, non-standard packing of bales which do not compare with world packing standards, adverse and expensive transportation logistics, lack of uniform classing including HVI instrumentation classing etc. Andhra Pradesh and Karnataka particularly are taking efforts to increase the crop in a big way. The continuation of the scheme will help these states.
SIMA had last year called for the rationalization of trucking costs on transport of cotton. Cotton has to be transported in large volumes to the Spinning Mills in this part of the country at great cost.
The costs like truck freight are going up due to increasing fuel prices and other costs. These increasing transportation costs will ultimately lead to increase in costs. Hence this issue has to be studied by the government and the mills should be compensated suitably.
The Textile Industry, particularly the spinning sector is facing the situation of high cotton prices and low realizations, thereby leading to continuous losses. The liquidity position has also become tight, following the Govt. policies of hiking interest rates.
The government had decided a few months ago to waive loans to the tune of 70000 crores of the framers of the country. Today the spinning industry is struggling to meet their commitments and need substantial relief, by way of additional finances and lower interest rates. They should be able to buy their cotton requirements during the marketing season and provide much needed support to the cotton growers.
The Textile Industry's requirements should be provided in full, to make them financially strong. The global recession, the volatility of the Rupee and the happenings in developed economies like USA should be taken as strong clues and our textile economy should be insulated by the Government.
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