Archive for April, 2010

Textile Industry seeking privilege packages for battling raised cost

Wednesday, April 7th, 2010

Chennai: The lower levels of textile sector- garment and spinning are prone to exceptional crisis that owes to high labor and input costs. Some aspect of blame game is there between the knitters and spinners. Tirupur’s knitwear units blame textile spinning mills for raising the prices of yarn. According to them, higher yarn exports are another reason for rise in prices.

Spinners are pleading helplessly, telling they have to face rapid rise in prices of cotton, power cut for many hours and increasing costs for labor and power. SIMA, South India Mills, the spinners association is not supposed to meddle with mill’s commercial activities and unlikely, more than 3,300 mills located all around the country were found to be acting simultaneously. But at the same time it is also said by them that Tirupur should be mending its own direction modernizing the entire process of production, decreasing environment cost and raising labor productivity.

Chairman of SIMA, Mr. J Thulasidhara explained in Coimbatore that best efforts along with privileged packages would be benefiting the whole value chain of textile, starting from the spinning units. His suggestions included corrective measures towards determined exports of cotton during peak season and help the industry in getting benefited from home grown cotton, providing assistance of working capital to spinners for sourcing cotton quality and adequate quantity during the season, also having a leveled field with MNC traders of cotton and supply continuous power supply to the textile sector at competitive prices.

Textile Ministry taking steps for controlling yarn prices: Maran

Monday, April 5th, 2010

Chennai: Dayanidhi Maran, union textile minister expressed his concern about the rising prices for yarn and said that protective measures will be taken by the government for protecting the interest of garment and handloom manufacturers.

Yarn prices have been really high and are affecting the garment and handloom manufacturers. Steps will be taken to ensure that the prices of yarn are available at reasonable levels, said Mr. Maran, but it was not elaborated what the measures are likely to be taken. Announcement is expecting within a week. Prices for yarn have been raised over by approx 30% in previous 3 months time.

While having a word with the media professionals in Chennai on 3rd March 2010, at sidelines of exhibition cum conference on traditional industries, initiated by Ficci, in co-operation with council for Handloom Export Production and Leather exports, the minister expressed that while handlooms were not being promoted by China in a bigger way, industry would prove to be huge strength for the nation, as it provided craftsmen for creating unique designs to be sold around the world. More business prospects can be expecting by better marketing said Maran.

Expressing that handloom sector of Tamil Nadu was one of the best promoted ones; Mr. Maran introduced the establishment of Chennai Haat, just the way of ‘Dilli Haat’ of Delhi. This step would be forwarded for eliminating middlemen and for providing ground to craftsmen from all around the state.

Production of textile rises in China to 27% from 2009

Saturday, April 3rd, 2010

Beijing: China’s textile production rose up to 27% during the initial two months of year 2010 up to $83 billion. 567.2 billion Yuan explained the information technology and Textile ministry through the statements on their website.

Increase from 17.1 percent up to 4.3 million tons can be seen in the production of chemical fibers, as against the yarn output that rose to 3.58 million tons that is 26.5% as per the statement given by the ministry of textile. The fastest developing base for textile in that city is Zhejiang province located in the eastern portion of China, producing more than 17.2% or 3.56billion pieces of clothing during the same period in comparison to last year.

Gas cut hits textile industry hard

Friday, April 2nd, 2010

SURAT: Raised cut in the gas supply has affected all hopes of the textile sector for moving back to track specifically before the start of marriage season. Relief was expected by the industry in the volume of gas supply but opposing the RSL, restricted supply level of some 86%, which has been reduced to 65% by the gas companies during the month of April.

It appears as if the central government is not concerned about the prevailing situation relating to raised cut in RSL that can have long lasting effects. At least 35% gas will now have to be purchased on market a rate which was 14% earlier. This percentage is higher by 40% of RSL value of SGTPA, South Gujarat Textile Processors Association, said Pramod Chaudhary.

Current price at which the industry is contracted for gas provision is Rs. 11.50 per cu.mtr as against the market prices which are Rs. 15.32 per cu.mtr.

Assurance was provided by the central government what gas supply will be given to the textile industry up to 0.6 million metric cu.mtr on daily basis (MMSCMD). But now it’s being clarified that only fall back gas will be give, that means that if something will be left after being supplied to others, then the industry will be given. Scenario has been changed due to this and so nothing is left for us, said Chaudhary.

During this time, sources of gas and oil ministry said that short supply is being suffered by Gujarat Gas Company since April 2008. Up to 30% shortage is there and situation is still not getting improved. This situation has not left them with any other options that to continue with cuts.

Meeting of the petroleum ministry to be held within this month is the only hope left with the textile ministry. Sources from the industry said that re-allotment issue will be taken up after the re-checking of quota allocation. This would be after this meeting that the KG Basic will get cleat and the textile industry of the city will be bearing the cut in supply.