The ex-factory price of the domestic VSF material is around Rs 65 per kg.The indigenous viscose staple fibre industry has already built up annual capacity of about 2.88 lakh tonnes and is in a position to expand it with the increase in demand. They also have the advantage of indigenous equipment and technology.

India manufacturers have already been known worldover as competitive suppliers of viscose staple fibre, having the necessary technology. the industry has successfully established VSF plants in Thailand, Indonesia and elsewhere. Besides, it has developed technology for the production of wood pulp, an essential feed stock for the viscose fibre industry from bamboo and even hard wood.

Domestic production of viscose staple fibre, whichwas around 1.83 lakh tonnes in 1993-94, rose to a peak of 1.94 lakh tonnes in 1995-96. It subsequently moved down to 1.79 lakh tonnes in the following year improving again to about 1.88 lakh tonnes in 1997-98.

Exports of viscose staple fibre from the country which were around 568 tonnes in 1996-97, vanished in the following year as the internal demand slowed down.

The country did effect some imports of this fibre.

Actual arrivals from abroad were of the order of 12,667 tonnes in 1996-97 and 10,794 in 1997-98.

It may be interesting to note that viscose staple fibre is quite akin to cotton and is being increasingly used in blending with cotton as well as with polyester and wool for physical comfort.

Though polyester can be blended with cotton textile mills, very often people prefer blends with viscose fibre in view of cleanliness and therefore resulting in negligible wastage.

The non-cotton producing countries prefer the manufacture of certain kinds of fabrics bending with viscose fibre.

Theviscose staple fibre industry was started in the country by GD Birla, a great visonary entrepreneur in 1950s, as he visualised that cotton by itself may not be able to meet the increasing clothing needs of the country and it was, therefore, necessary to take up the manufalcture of viscose staple fibre which could supplement cotton.

Polyester came to be introduced into the country much later around early 1960s. Initially viscose staple fibre was much cheaper than polyester, but the situation is now reversed. While the ex-factory price for viscose staple fibre now stands around Rs 65 per kg, polyester staple fibre is being offered around Rs 41 per kg by some manufacturers while a few others have now slashed their prices further to about Rs 38 per kg.

This is because while the indigenous production has risen sharply, while the prospects for its exports are receding fast. According to some exporters, shipments of polyester fibre are dwindling and fresh overseas orders are drying up as the cut-throatcompetition in the overseas markets resorted to by Taiwan, South Korea, Thailand and Indonesia in particular.

Some of the major producers in these countries have pruned their prices drastically in recent months. Reports indicate that they are offering the marterial around $0.60-0.65 per kg (cif).

Taiwan, South Korea, Thailand and Indonesia have also set up huge capacities far in excess of their domestic requirements. This has contributed tremendously to the glut existing in these countries.

Heavy devaluation of their currencies in particular the Thai baht have sharpened their competitive edge, so much so that some of the European producers are being forced to prune their production.