Textile Sector Faces Technological Obsolescence

Recent years have witnessed a drastic growth in the hosiery, and readymade garment production in the Indian textile sector. However, the textile sector is largely unorganised and dispersed.

Due to this, the industry is suffering from technological obsolescence and sub-sectors need up-to-date machinery for production of fabric, yarn, and ready-made garments, according to fibre2fashion.

India has taken several steps to boost the industrial growth in the textile sector. Initiatives such as Technology Upgradation Funds Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), excise and import duty liberalisation of textiles and textile machinery are shots in the arm of the textile industry.

They have not only provided much required fillip for igniting growth but also have leveraged the growth of textile engineering industry which includes manufacture of complete machinery, accessories and parts.

Though the machinery industry is growing in a reasonable speed, some of the sector specific machines still have not been able to match the quality and productivity standards of the world-class machines.

News Source: http://www.aepcindia.com/national.asp?id=183&yr=2010

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Yarn Shortage Affecting Textile Sector of Pakistan

ISLAMABAD — As the government has failed to resolve the yarn crisis, some 30 per cent work of the textile sector has been affected and majority of the textile units had close down due to the unavailability of the yarn from last few weeks, TheNation has learnt on Friday

According to the sources, unavailability of yarn even at the higher prices is getting serious with the passage of every day and majority of the industries in Faisalabad and Jhang and other countries had left the working. If the current crises remain for next few weeks’ country would not available to fulfill its export targets, the sources added.

It is worth mentioning here that in the ongoing year production of cotton in the international market is not sufficient and countries like China are importing it from Pakistan, which is considered one of the main reason for the yarn shortage in the country.

The sources further said that every year Pakistan exports about 25 per cent of the yarn to the other countries, while this year the export expected to be 30 per cent, which could create problems for the local industries.

Meanwhile, different associations of the textile industry believed that exporting yarn is the reason for the unavailability and they are demanding of the government to impose ban on the export of yarn in order to provide commodity to the local consumers. Small Power Looms Association already threaten to observe countrywide strike in the month of December if government did not impose ban on the export of yarn.

However, the government is totally failed to solve the said crisis as neither the talks, between the Minister of Textile Industry with all stakeholders, proved any good nor the Cabinet Committee on Textile found any solution to the problem. The cabinet committee on textile met under the chair of Federal Minister for Finance Shaukat Tarin few days back but did not announce any strategy regarding availability of yarn in the country.

The sources further said that if the government did not come with some strategy in next few weeks Pakistan would deprive of the textile orders of EU and USA that would further affect the growth of the textile sector.

Similarly, the yarn shortage emerged because of the black-marketing and storage of yarn in order to increase the prices. Domestic cotton prices have already surged by 25 per cent since the start of the current fiscal year. Neither the provincial governments nor the federal government took any action against those responsible for the blackmarketing

Federal Minister for Textile Industry Rana Farooq Saeed Khan said once that action would be taken against the hoarding and black marketing but despite passing of two weeks no step is taken.

Analysts and exporters anticipate further rise in the domestic cotton prices because of active buying by the international buyers who have flocked Pakistan amid a shortfall in world cotton production.

Source: PRGMEA

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India’s Textiles & Clothing Exports

India’s textiles and clothing exports stood at US$ 19.15 billion in 2006-2007 and improved to US$ 22.14 billion in 2007-2008. Textiles and clothing exports came down to US$ 20.94 billion in 2008-2009. However, in rupee terms the exports of textiles and clothing during 2008-2009 were of the order of Rs.96,309 crore as against Rs.89,121 crore in 2007-08, thus representing an appreciation of 8.07%. In absolute terms, the textiles and clothing exports as percentage of India’s total exports declined from 15.16% in 2006-2007 to 13.59% in 2007-2008 and further to 11.47% in 2008-2009. As per advance information received from some segments of the industry, there has been a considerable decline in the exports of readymade garment and cotton products during the first two quarters of the current financial year. This was stated by the Minister of State of Textiles, Smt . Panabaaka Lakshmi in the Lok Sabha today, in a written reply to a question by Shri Hansraj G. Ahir, Shri Jagdish Sharma and Dr. Murli Manohar Joshi.

The Government has been holding discussions at the highest levels with textiles and garment exporters to find out ways and means to counter the adverse effect of the global economic slowdown on India’s textiles exports. Various incentives have been introduced or enhanced for the sector under the Foreign Trade Policy 2009-2014, the Minister added.

News Source: Ministry of Textiles

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Italy Textile, Shoe, Leather, Eyewear Indus Want Government Support

Italy's textile, leather, shoe and eyewear industry leaders said Monday they have formed a united front to ask the government to help sustain jobs, salaries and investments, as the global economic turmoil batters the retail sector.

In a statement, the groups said they wrote a letter to Italy's Prime Minister Silvio Berlusconi, asking the government for an "urgent" meeting to discuss the negative effects of the global crisis on the sectors.

Italy is the largest exporter of clothing, textiles and shoes in the 27-member European Union. According to government agency SACE earlier this month, Italian export growth is expected to slow notably for the next three years.

The letter calls for the government to help maintain production with measures including facilitating credit lines for small- and medium-sized companies which make up the textile, shoe and eyewear industries, as well as cutting taxes on female workers, in order to improve their working conditions.

Female workers make up 65% of these industries' work force, the statement said.

Experts expect the luxury sector, which these industries serve, to face pressure into 2009. Bain & Co. expects worldwide luxury good sales to rise only 3% in 2008, from a 9% on-year increase last year.

News Source: chineseleather.org

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