Home / Knowledge / News / Textiles / Textile industry appeals for cotton fibre security
Textile industry appeals for cotton fibre security
30
Sep '16
L-R: Smriti Irani, Vanathi Srinivasan and M Senthilkumar
L-R: Smriti Irani, Vanathi Srinivasan and M Senthilkumar
A pan-India textile industry delegation has urged Union textiles minister Smriti Irani to announce cotton fibre security policy by extending a low cost working capital fund. The policy should also ensure adequate stock to use ratio of cotton to have a level playing field in the globalised environment. India's current stock to use ratio is 12-15 per cent.

The 19-member delegation, which met the Union minister, was led by Tamil Nadu BJP general secretary Vanathi Srinivasan and The Southern India Mills' Association (SIMA) chairman M Senthilkumar. It included representatives from Northern India Textile Mills' Association (NITMA), Rajasthan Textile Mills' Association (RTMA), Tamil Nadu Spinning Mills Association (TASMA), South India Spinners' Association (SISPA), Indian Texpreneurs Federation (ITF), Tirupur Exporters' Association (TEA), Powerloom Development & Export Promotion Council (PDEXCIL), Andhra Pradesh Spinning Mills Association, All India Spinning Mills Association, Tamil Nadu Open End Spinning Mills Association, and All Gujarat Spinners' Association.

The predominantly cotton based Indian textile industry has been facing acute crisis during the last eight years due to high volatility in cotton prices especially during off season starting from May to September. Though the cotton year is October to September, more than 80 per cent of the cotton arrives in the market during November to March. Due to financial constraints and three months credit limit facility extended by the banks, spinning mills are forced to procure high cost cotton for at least five months, the delegation apprised the minister.

The joint memorandum submitted on the basis of collective decision taken by 26 textile associations across the value chain in the country, insisted the government to direct Cotton Corporation of India to procure 70 to 80 lakh bales of cotton during peak season when the Indian cotton price rules lower than the international price, retain cotton as buffer stock and sell this quantity only to the actual users during May to September.

Senthilkumar said that cotton fibre security is very essential as more than 80 per cent of the textile manufacturing units are in the MSME category which provides 35 million jobs directly. He stated that the cotton price which was Rs 33,000 per candy of 355 kg reached almost Rs 50,000 per candy during July 2016 thus increasing the clean cotton price up to Rs 65 per kg while the yarn price increased only by Rs 20 to Rs 30 per kg, thus making the spinning mills to incur Rs 20 to Rs 25 per kg loss during the last three months.

This has caused several hundreds of mills to cut down production by 20-35 per cent throwing lakhs of people out of jobs. Downstream sectors such as handlooms, powerlooms and apparel also incurred huge losses and there was a decline in the export of cotton textiles.

SIMA chairman appealed to the Centre to ensure adequate stock-to-use ratio of 25 per cent, which is currently 12 to 15 per cent in India as against world average of 91 per cent including China and 54 per cent excluding China. (RKS)

Fibre2Fashion News Desk – India


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

C Kamatchisundaram, Voltas

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Boban Charly,

Boban Charly

Bierrebi designs and manufactures automatic machines that cut fabric into...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

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

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search