Quality cotton exports worry local textile industry.
14 Dec '07
2 min read
Rupee appreciation is taking its toll on the Indian textile industry making it difficult for the sector to survive with every passing day. Needless to say the exporters are worst hit by the on going crisis and unless concrete steps are taken by the Government, the situation is unlikely to change its present course.
Cotton exports to China have increased amidst high interest rates and this is undoubtedly affecting the domestic industry. The total production of cotton in this season amounts to 31 million cotton bales and local textile industry dreads that nearly 70 percent of this may flow to China which has for long been one of the biggest rivals of India.
In spite of increasing the cotton cultivation land, the condition remains unchanged because a major chunk of the produce is being exported to China. The matter will soon be brought to the notice of the Government to ascertain that the best quality cotton produced should be made available to Indian manufacturers and not to its staunch competitors.
At present China is contributing nearly 31 percent to the global apparel production and this is likely to further increase by another 15 percent in the next 3 years. India on the other had contributes a petty 3 percent to the total garment production.
The ratio only goes to show that it's high time; the Government realizes that textile industry needs a major transformation of cotton export policies for the country's own development.
marketing@alchempro.com
