In an appeal addressed to the industry, Shishir
Jaipuria, Chairman of CITI has pointed out that in a recent meeting,
the Minister of Textiles had stressed on the problems being faced by
the handloom industry for accessing hank yarn…In this context,
Jaipuria also requested the industry to maintain adequate supply of
hank yarn to the handloom sector at affordable prices…In a
statement issued in the capital explaining his appeal, Jaipuria stated
that prices of cotton yarn have increased because of steep increase in
cotton prices, power cost and labour cost. Globally, cotton production
has declined and consumption increased during the current cotton
season, pushing up cotton and yarn prices steeply all over the world,
including in India…But, he added, “The downstream segments like
home textiles and garments are not in a position to pass on the
increased cost of raw materials fully to the global markets which are
just gradually recovering from recession.”..Jaipuria pointed out
that global cotton production is expected to increase substantially in
the ensuing cotton season and the current problem of high raw material
prices is therefore expected to ease in another six months…He
also requested government to provide some additional incentives for
exports of home textiles and garments for these six months, in order to
help these sub sectors to tide over the temporary problem…Asserting
that all the sub sectors in the textile value chain are highly inter
dependent, CITI Chairman stressed the need to aim at sustained growth
of the entire industry. Shishir Jaipuria appealed to the industry to
rise up to the occasion and take proactive measures to address the
problem of increasing cotton yarn prices in the country…He also
requested government to ensure an ending stock of 65 lakh bales of
cotton this year, as against 40.50 lakh bales currently estimated by
government’s Cotton Advisory Board, in order to control cotton prices
and help the textile industry to avoid price increases.
Date:4/20/2010
Source:SME Times