Reports suggest that the government of India will formulate a new textile policy to replace the current one formulated in 1985. The significant changes happened in the domestic and international markets appear to be the reason for the fresh look at the policy. The thrust of the the new policy will be to enhance the competitive strength of the country's textile industry.

Cotton export shipment lower

The actual shipment of cotton against the export quota of 7.2 lakh bales during the current season has been just about 71,000 bales so far. Shipments up to middle February amounted to about 21,000 bales and during the subsequent periods from mid-February to mid-April 1998, only about 50,000 bales appear to have been shipped.

Handloom sector upgradation

The handloom sector, which had a total outlay of about Rs 178 crore in 1997-98, is expected to focus its effort in the current financial year on technical upgradation and development of contemporary designs to helpthe sector face competition besides improving exports. CK Mishra, additional development commissioner (handlooms), government of India, said that though the outlay for 1998-99 was yet to be decided upon, discussions were on to lay greater emphasis on techniques and patterns to enhance product acceptability and add more value. This would translate itself in terms of upgradation of looms besides the development of innovative patterns. Of the total outlay for the previous financial year, about Rs 100 crore was for plan schemes and incentives meant for weaver co-operatives. The non-plan outlay for Rs 78 crore mainly took care of wages at the weavers service centers (WSCs).

Cotton suffers setback

The cotton scenario has suffered a severe jolt this year, with a major setback in production. The significant loss in production and productivity was mainly due to certain unseasonal rains and severe cotton bollworm incidence and damage. The agro-climate of the cropping season 1997-98 was most unfavourable inPunjab in the North zone, Maharashtra in central zone and Andhra Pradesh in the South zone. The continuous wet spell, cloudy weather and incessant rains coincided with crop maturity, and affected production. The adverse climate favoured extensive bollworm incidence and damage. The unfavourable climate and pest incidence led to a decline in production from 178 lakh bales to 146 lakh bales. However, Gujarat recorded the highest production of 39 lakh bales leading to higher productivity of 442 kg lint per hectare.

Spinning mills closed

The South India Small Spinners' Association (Sisspa) has announced the closure of spinning mills for a day next month in Tamil Nadu to seek redressal of their woes. According to them the mills have piled up losses due to prolonged recession in the textile sector. "Around 500 mills out of the total 1,000 mills in Tanil Nadu will remain closed for a day on May 12 to draw attention of the state and central governments, according to A V Ramaraj, president, Sisspa. He saidthe decision of a one-day closure was taken at meeting of the General Council of Sisspa on Tuesday. However, Mahendran Ramadas, vice-president, Sisspa and president, South India Engineering Manufacturers' Association (SIEMA), described the decision as `unprecedented' in the history of the Association. He said Sisspa would also try to rope in bigger mills, who are members of the Southern India Mills Association (SIMA), since the basic causes for the illness plaguing tghe small spinning mills were affecting the bigger units too. Ramraj said that the one-day closure become necessary as their repeated representations to the central and state governments failed to bring any relief.

Nitma moots anti-dumping cell

The Northern India Textile Mills' Association (Nitma) has suggested the setting up an anti-dumpting cell within the textile ministry to deal with the problems arising out of anti-dumping duties imposed by some of the importing countries. The suggestion was made by Alok Shriram, president, Nitma,at a meeting with the textile secretary, Shyamal Ghosh. Since textile exports constitute a major chunk of the country's total exports, the imposition of these duties by the importing countries has affected the textile industry in recent times, Shriram pointed out. Nitma also wanted the government to set up, at the earliest, a Technology Upgradation Fund so that the industry equips itself with the latest technology to compete in the post-WTO regime. It also stressed that such a fund be made applicable to all segments of the textile industry, including spinning. According to Nitma's technology status survey, in northern India 60 per cent of the spinning capacity has out-dated technology. Of the remaining 40 per cent, the capacity of which is considered relatively modern, the technology used is that of the early eighties. Very few 100 per cent EOUs are equipped with modern technology, the survey said.

Ministry plans measures

The union textiles ministry is planning a host of measures to improve thecompetitiveness of the industry. The ministry will soon initiate measures to improve availability of raw cotton by encouraging use of blends. Plans are also afoot to strengthen the training network for skilled manpower and enrich the design capabilities.

DEPB extension sought

Carpet export promotion council chairman OP Garg sought the extension of DEPB scheme for for hand-knotted carpets and suggested fixing value addition on norms at 50 per cent in view of the change in the manufacturing pattern. The handicraft export promotion council demanded reducing the threshold limit for exports under EPCG scheme for handicrafts to Rs 10 lakh.

Industry urged to draw up action plan

The union minister of textiles Kashi Rana has urged the textile industry to draw up an action plan to strengthen its export capabilities with an aim of attaining the ambitious 20 per cent growth target during the current year.

He said that the 1997-2002 exim policy made provisions for a number of measures to boostexports. "The facility for zero import duty for machinery under the Export Promotion Capital Goods scheme for the garment and sericulture sector at a lower threshold value of Rs 1 crore, allowance of 5 per cent special custom duty in DEPB rates, provision for private bonded warehouses for stock and trade and refining of procedures were some of the measures which the industry could take advantage of" he said. Rana said there were greater possibilities for accelerated growth of Indian textiles and clothing exports in future quota free regimes. India, he said should try to draw upon its inherent strengths and systematically overcome its weaknesses. The ministry of textiles would lay emphasis on technological upgradation and modernisation of the weaving and processing industry. Improving availibility of raw cotton for export units by encouraging use of blends, enriching design capabilities and strengthening training network.

Drop in world cotton output warned

Lower prices and continuing difficulties inraising productivity may lead to a fall in world cotton production during 1998-99, forecasts the international cotton advisory committee (ICAC). World cotton area in 1998-99 is now estimated at around 33.3 million hectares, a slight drop from the level of 33.9 million hectares in 1997-98.

World cotton consumption to go up

The world cotton consumption is expected to go up in 1998-99. Cotton consumption is forecast to be lower in major countries like China, USA and Pakistan during 1998-99 while India's mill consumption may remain at the same level as in 1997-98, reports International cotton advisory committee.

The increase in world consumption, despite the fall in major countries, is due to the expected increases in countries like Mexico, Brazil, Turkey and Russia.