Home / Knowledge / News / Textiles / Textile sector aches due to umpteen job losses

Textile sector aches due to umpteen job losses

21
Nov '08
Coupled with rising cotton prices, textile industry is facing the burn of global recession and workers are the ones getting charred.

In the past six months near about 7 lakh people retrenched from the textile sector. Experts are of the opinion, unstable rupee, shooting cotton prices, power crisis, liquidity crunch and plunging export orders are mostly responsible for such predicament.

Mr D K Nair, Secretary General, Confederation of Indian Textile Industry (CITI), in this context told to Fibre2fashion, “Textiles and clothing industry employs around 35 million workers directly. There is a perceptible decline in both exports and domestic sale of textile products in recent months. It is our estimate that around 7 lakh jobs have already lost in this industry during the current fiscal and another 5 lakh may be lost during the remaining part of the year, unless some serious remedial action is taken.”

The saddest part is daily wagers are the ones who suffered the most. The Indian textile industry engages nearly 35 million of daily labourers. “Mills are running hardly 3-4 days a week, or operating just 75 percent of their capacities or have reduced shifts from three to one,” added Mr Nair.

Last year, out of the total production of 31.5 million bales, India exported 8.5 million bales of cotton, as per the estimated of Government's Cotton Advisory Board (CAB). This year, production has been estimated at 32.2 million bales and exports at 7.5 million bales. Currently Indian cotton is the most expensive cotton in the world.

Further discussing the effects of rise in MSP of cotton, the Secretary General stressed, “Global cotton prices have been crashing because of lower demand, following the credit crisis and economic slow down in developed countries. In India, market forces are not allowed to operate, because of the unreasonably high Minimum Support Prices. Therefore, our cotton prices will remain uncompetitive in the international markets. Thus, in my opinion, exports are likely to decline substantially below the levels estimated by CAB.”

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Sep 2020

EFTA market study aims to increase trade with Philippines

To strengthen The Philippines' trade with the European Free Trade...

Pic: UKFT

Textiles | On 22nd Sep 2020

UKFT demands reversal to end VAT-free shopping

UKFT is urging the government to reverse its decision to end VAT-free ...

Pic: Centric Brands

Retail | On 22nd Sep 2020

Centric Brands confirms reorganisation plan

US-based Centric Brands Inc. recently announced that the US...

Interviews View All

Pratik Bachkaniwala, Palod Himson Machines

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Ronald Van Den Broek,

Ronald Van Den Broek

Headquartered in Japan, Mimaki Engineering Co. Ltd. manufactures and...

Dejan Lalevic,

Dejan Lalevic

Mesdan SPA, a subsidiary of Italian firm Savio Macchine Tessili,...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

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


September 2020

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


Advanced Search