'India needs a fibre policy to avoid adhoc decision making'
Various stakeholders in the cotton and textiles industry always seem to be at loggerheads especially when it comes to export of raw cotton or yarn and the India Government who plays the role of the referree sometimes have to take decision to suspend or allow exports which creates resentment in one section of the industry. The decision to allow export of an additional one million bales of cotton this year by the government has not gone down well with the exporters, who termed it too little and too late. In December 2010, when yarn exports were suspended it let to protests from yarn makers. Despite all this turmoil in the Indian cotton industry, TT Ltd, an integrated textiles company has posted an impressive 275% growth annual profits for 2010-11 and continues to move ahead with a Rs 150 cr expansion plan which will make them exit from low value ginning to higher investments in garments, yarn and branded apparel. Sreekumar: There is a constant conflict between cotton growers and textiles industry over export of raw cotton. Industry feels exports should be curbed while growers say there is enough supplies and surplus that can be exported? Even the agriculture and textiles ministry don’t see eye to eye on this issue? How do you think this issue can be resolved? Sanjay Jain: We need a clear Fibre Policy which has been pending for years. This would reduce scope for lobbying and all the players would be clear of course of action. This uncertainity and abrupt decisions is creating chaos. Raw cotton is an agricultural product and hence its has to be treated accordingly as is being done for others like wheat, rice, sugar etc. SK: TT Ltd has stated that it is a victim of Government policy that suspended yarn exports from December to March and excise duty on domestic garments. Rising domestic, international prices were attributed as reason for suspension of yarn exports. Also government felt there was a tug of war between yarn makers, garment makers on yarn exports issue. What is your view on this? SJ: Prices should never be a reason for opening or closing exports. The key factor should be availability of the same to the value added industry. When policies are not clear cut, this tug of war and lobbying is a natural phenomenon. The Govt has treated yarn as cotton, however there is a big difference in both - one is a agricultural crop that comes once a year, while yarn is an industrial product and is manufactured 365 days a year. You cannot stop exports of a product whose production is 20% exported for 3 months - does the Government expect domestic demand to grow over night or mills to stock for 3 months and export when the Govt allows ? Their policies created a problem without giving a solution.
Problems Of Indian Cotton Industry - News
A large number of knit makers also import cotton from Indian due to huge gap between the demand and local production. Bangladesh produces only 70000 bales of cotton against its yearly demand of five million bales, prompting the spinners to import huge
Despite all this turmoil in the Indian cotton industry, TT Ltd, an integrated textiles company has posted an impressive 275% growth annual profits for 2010-11 and continues to move ahead with a Rs 150 cr expansion plan which will make them exit from
Maran's agenda is simple: maximise industry profits. That's always a teetertotter between yarn spinners and handloom/powerloom/garment mills. In 2010-11, India had a good cotton crop in a year when world's garment factory China was short.
“Looking into the sharp decrease in prices of raw material, ie cotton in past few weeks, there will be reduction in denims prices in coming times and the prices will ease out. We don't see any problems in price as well as supply”, says Mr Utsav Pandwar
"Prices have been crashing, as there is no demand in India as well as in the export market", a Rajkot-based cotton exporter told Moneylife. Further, an industry expert added, "This problem of the textile industry will persist for entire FY11.
Merchants Group Add Extra Value to Garment Export Business!
Globalization has put forth India's business community in the international market. Various foreign trade policies and investment policies have been framed to facilitate foreign trade and increase the profitability of the Indian garment manufacturers. The advent of liberal trade policies in textile and garments sector have made it possible of usage of modern technologies and international methods of manufacturing clothes. This sector of garments is one of the most successful and important in terms of foreign exchange generation and employment generating field. It provides employment to lakhs of people and is the most sort out and booming industry of India.
The Indian textile and garment industry is completely independent on itself i.e. from fibre manufacturing to the finished garments without sourcing it from other countries. India is becoming the most preferred destination for sourcing readymade garments for the international market. Various garment export companies are coming up with clothes that are fashionable keeping international trend in mind and also of good quality. Many international brands also source readymade garments from Indian market.
The capitalization in various garment manufacturing arenas is increasing like- manpower, cotton production, multi-fiber production, etc. The Indian garment export graph is witnessing a steep rise since last few years which is a positive reinforcement for Indian exporters and foreign buyers. India is being seen as the next pioneer country in readymade garment export business. Foreseeing the present booming fashion industry, the foreign buyers are showing interest in doing business with Indian exporters. Therefore it becomes mandatory for exporters to constantly present variation in designs and patterns in garments with quality maintenance.
Free trade scenario has been created in the Indian market, which has resulted cut throat competition among the manufactures and exporters for various things like quality, raw material base, manpower, cost of inputs, etc. required for garment making. To sustain the competition various steps are to be taken, the foremost one is to imbibe the latest manufacturing and production technologies. The importance of merchandising has increased as it helps in generating high dividends. Branding and presenting diversified products is a value addition for the companies in order to conquer the global market.
Problems Of Indian Cotton Industry - Bookshelf
India, five years of stabilization and reform and the challenges ahead
The abolition of the Multi-Fibers Agreement (MFA) represents a tremendous opportunity for growth and employment for the Indian cotton-textile industry. ...The Indian Cotton Growing Review
This Committee which consisted of agricultural experts toured the whole of India to examine the cotton problems of the different provinces and submitted a ...Financing of Cotton Textile Industry in India
Only few studies were made on the financial problems of the cotton textile industry in India. Some of the important studies on the investment behaviour, ...Manchester men and Indian cotton, 1847-1872
CHAPTER II MANCHESTER PROBLEMS AND PERSONALITIES The question of the ... were talking about expanding their own cotton industry to a point where there would ...The Lancashire cotton industry, a history since 1700
in markets such as India encouraged the further expansion of the Indian cotton industry and the growth in exports of cotton goods from Japan. ...Guide One Directory
Cotton - Wikipedia, the free encyclopedia
Hundreds of years before the Christian era, cotton textiles were woven in India with ... The cotton industry relies heavily on chemicals, such as herbicides, ...
Growth Prospects for India's Cotton and Textile Industries
June 2005 Outlook Report from the US Department of Agriculture, reviewing the prospects for increased demand for cotton and man-made fibers in the Indian textile and ...
SeedQuest - Central information website for the global seed ...
News section. 13,429. Back to main news page ...
Child slavery thriving in Indian cotton industry
The Indian cottonseed industry is also marked by the highest proportion of child ... India has distinction of having the largest area under cotton cultivation in the world ...
AgBioForum 8(2&3): Perceptions of the Impacts of Genetically ...
An outline of the cotton industry in Gujarat is shown in Figure 2. ... modified cotton varieties: A case study of the cotton industry in Gujarat, India. ...