Rise in demand for textile items has helped spinning mills in India to attain break-even, following which the mills are once again showing signs of revival.
Speaking at the 53rd Annual General Meeting of South India Mills' Association (SIMA) at Coimbatore, Association Chairman S Dinakaran said power crisis, Centre's inconsistent cotton export policies, lack of manpower and cotton price volatility caused the spinning industry to lose working capital worth over Rs. 55 billion.
He said owing to Government's indiscreet cotton export policies and global cotton scarcity of about 10 percent, Indian textile industry experienced highest volatility in cotton prices during 2010-11 season.
The price of Shanker -6 variety of cotton which was around Rs. 38,000 per candy (1 candy = 355 kg) during October 2010, increased to Rs. 61,800 during end of March 2011, to again slip to around Rs. 31,000 per candy towards end of July 2011, he added.
Considering all this, Mr. Dinakaran noted that now when the industry is back on the revival track, the Government should expedite implementation of the Rs. 350 billion debt restructuring package, to help the spinning industry retain its growth momentum.
During the 2011-12 season, cotton was cultivated on a record 12.178 million hectares, more than double the 1950-51's acreage of 5.882 million hectares. Likewise, the yields also increased from just 3 million bales in 1950-51 to record 35.3 million bales, he said.
Surpassing the CAB's estimates of 8.4 million bales, the country exported around 13 million bales during 2011-12 season, leaving back a stock of 2.8 million bales of inferior quality cotton for the domestic industry, which is the lowest ever closing stock in the past few years, the SIMA Chief added.
He said though 2011-12's cotton cultivation acreage came to be about eight percent more than previous year, it is expected to register a marginal fall in 2012-13. However, the mills' consumption in 2012-13 is expected to increase slightly due to improved market conditions, he noted.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=115952
