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Monday, June 22, 1998

Commodity Briefing 

 
Better techniques for bivoltine silk

New and better technologies have been developed to expand bivoltine silk production in the country, according to the Central Silk Board (CSB).

The technologies, developed by the CSB in collaboration with the Japan International Cooperation Agency (Jica) under the Bivoltine Sericulture Technology Development Project (BSTD), include a package for cultivation of superior quality mulberry leaf and production of new silkworm hybrids suitable for Indian conditions.

Evaluating the results of the BSTD, the CSB, in its annual report for 1996-97, released recently, says that the project has succeeded in working out measures to control silkworm disease by isolating the disease causing agents. The first phase of the project, initiated in 1991 and concluded in March 1997, has evolved technology for production of high quality silkworm seeds, seed preservation, processing and incubation.

Maharashtra's sericulture programme

The Maharashtra government has chalkedout a new five-year programme for substantially raising the state's mulberry and tassar silk output. The programme with a Rs 25 crore outlay is expected to achieve a 12-fold increase in output during the five year period.

The integrated programme, starting in 1998-99 will cover around 1,000 villages spread over the 20 districts of Marathwada, Western Maharashtra and Vidarbha regions and also the jungles in Gadchiroli, Bhandara and Chandrapur districts. The programme is aimed at enhancing the state's raw silk output from the prevailing 15 tonnes valued at Rs 2 crore to 180 tonnes valued at Rs 24 crore by the year 2002-2003.

This will be done by increasing the cocoon collection from mulberry fields from the current 158 tonnes worth Rs 1.7 crore to 1,800 tonnes worth Rs 20 crore and augmenting cocoon procurement from tassar trees from 950 kandy (one kandy is 4,000 cocoons) worth Rs 19 lakh to 10,000 kandy worth Rs 2 crore in the five year period.

NJDP revitalises jute sector

The National JuteDevelopment Programme (NJDP) has been successful in revitalising the country jute sector, though it has not achieved every benchmark specified in the original programme approval documents. The project has had a multiple impact on the variety of uses of jute and on its production and consumption.

According to officials, the programme is one of the largest UNDP aided programmes comprising 20 million dollars by way of grants and another 3 million dollars as loans with an equal amount funded by the government of India. The programme was originally intended to last five years but was later extended by one year and is scheduled to end next month.

It has opened up new markets in the handicrafts, small-scale and large-scale sector. Some of the major developments that have started having an impact on the jute sector are eco-friendly retting, spinning of yarn in small mills, low cost indigenous machinery development, jute blended yarn and geot-extiles.

Wools in for major revamp

Wools of New Zealand (WNZ)is going in for a massive restructuring which involves cost cutting and retrenchment of staff in its India office. These changes come in the wake of the global restructuring of WNZ. Though WNZ officials were not available for comment, according to sources in the New Zealand Wool Services, Marc Williamson, International Marketing Manager, WNZ was in India recently to effect these changes.

The Indian operations will now be a one man show with, Kamal Gandhi, looking after WNZ in India. There will also be a change in the focus of the organisation as the new projects will initiate commercial deals linking best suppliers, manufacturers and retailers for mutually beneficial interests.

In the new scheme, WNZ will take up projects which will show definite improvement in product quality and enhance returns.

Exemption sought from levy

Northern India Textile Mills' Association (Nitma) has urged the government to exempt manmade fibres (MMF) and filament yarns from the levy special additional customs dutynow reduced to 4 per cent, as the industry is finding it difficult to realise viable prices for blended and manmade yarns and fabrics and also due to the fact that industry uses petro-chemical based raw materials.

Reacting to the budget proposals, NITMA president Alok Shriram said that the budget has been unable to provide suitable measures to rationalise the duty structure. Moreover, the denial of 5 per cent Modvat credit will escalate the manufacturing cost and thus reduce the competitiveness of the industry, he said. It is matter of serious concern that textile industry which earns one-third of the country's foreign exchange stands almost ignored for its legitimate demands.

PSF exports record 23% drop

Despite a 35 per cent growth in sales of polyester staple fibre, exports have fallen by 23 per cent during April 1998 over April 1997, says the Confederation of Indian Industry ASCON data. The ASCON industry monitor has shown that polyester filament yarn sales during April 1998 has grown by 30per cent over that in April 1997 and exports have risen by 80 per cent.

The data states that during the same period sales of nylon filament yarn has fallen by 20 per cent despite a 120 per cent hike in exports.

Silk units propose ban on waste trade

Spun silk units in Karnataka are planning to put forward a proposal to industries and commerce ministry to ban the export of silk waste, a critical input for spun silk yarn, in order to effect a reduction in its price in the domestic market. Silk waste currently sells at $8 per kg in the export market and while it could be procured locally at Rs 120 a kg up to two years ago, the price has now increased sharply to Rs 350 per kg.

According to trade sources, if silk waste export is banned, prices in the domestic market will also fall thereby enabling spun silk yarn to be priced closer to the imported variety which is now Rs 600 cheaper than the local yarn. However market sources felt that it is unlikely that the government would ban the export of silkwaste even though it earns only around Rs 6 crores. The spun silk units in the state have been facing a shortage in the supply of silk waste and most of them are performing at least 30 percent below capacity.

Textile slump telling on suppliers

With the marketing scenario worsening for the textile industry, the situation is grim for raw material supplier, both cotton merchants and synthetic fibre producing companies, to the industry in the South.

The estimated Rs 600 crore is said to be the amount due to cotton suppliers from the mills in the Coimbatore region which according to industry sources is a conservative figure. The actual outstanding payment for raw material supply is said to be very high.

There has been a spurt in cotton prices in the past one week and the increase is between Rs 700 and Rs 800 per candy which is largely on account of the shortage of the crop. Still, cotton traders are not very enthusiastic about supplying cotton to the mills because of the difficulty in realisingpayment from them.

MSP for raw jute hiked

The government has announced a hike in the minimum support price of raw jute to Rs 650 per quintal for TD-5 (Assam) for 1998-99 season. The new MSPs for jute which was announced recently was however found non acceptable by the MPs from West Bengal who argued that the MSPs were inadequate. This is the first time that the MSP for jute has been increased so sharply, compared to an average of between Rs 40 to Rs 60 annually in the recent past.

Incidentally, the Agriculture Prices Commission (APC) recommended an increase of Rs 60 per quintal over the previous season's MSP ofRs 570 per quintal. APC recommendations are only indicative, though the government is the final authority on the issue.

It is understood that the government has taken into account the price index for raw jute and input cost of farmers before taking the decision on MSP for jute. It is also due to the fact that the authorities wanted to ensure remunerative prices to the farmers for theirproduce for sustained growth in farm sector.

(Express Textiles & Agencies)

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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