TEXTILE COS SPIN A LONG YARN
Article Abstract:
According to the Indian Cotton Mills Federation (ICMF), the domestic textile industry has been affected by excess capacity of yarn and fabrics. The number of mills closed down totalled 206 in July 1997 which has increased to 257 at the end of July 1998. In the past three years, the number of spindles has increased by 4.33 million and rotors by 1.32 lakh. The production of spun yarn has increased by 774 million kgs and filament yarn by 347 million kg. The share of filament yarn in total yarn production has increased from 17 percent in 1995-96 to 20 percent in 1997-98. The production of fabrics has increased by 28 percent to 8,000 million square metres between 1995-96 and 1997-98. ICMF states that the duty on textiles is maximum at 18 percent which should be reduced. Exports of textiles has declined and imports have increased. The Government of India should levy an advalorem duty on imports of textiles. Imports of textiles products has increased by 27 percent to Rs1,085 crore between April to October 1998 (Rs850 crore during April to October 1997). Imports of textiles and clothing is expected to increase by 2003 AD and quantitative restrictions on exports will be phased out resulting in tough competition for Indian textile industry from cheaper imports. The Government of India is setting up a Rs25,000 crore Technology Upgradation Fund (TUF) for five years from April 1, 1999. It has appointed high-level committee for drafting a new textile policy. (rk)(vr)
Comment:
According to the Indian Cotton Mills Federation (ICMF), the domestic textile industry has been affected by excess capacity of yarn and fabrics.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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SPINNING YARN, NOT PROFITS
Article Abstract:
With a sharp drop in overseas demand for Indian cotton yarn, the target for cotton exports for 1998-99 has been lowered to $1,600 million from $1,700 million for 1997-98. The demand has declined in India also due to the fall in demand from weavers who are a facing liquidity crunch. Consequently, some spinners have been forced to reduce their production and some have closed down their units. During April-June 1998, cotton yarn exports declined by 20.92 percent at $338.32 million ($427.83 in the same period of 1997). In terms of volume, the exports declined to 110.84 million kg, worth Rs1,372 crore (131.29 million kg, worth Rs1,488 crore). In the first half of 1998-99, the exports declined to 223.21 million kg, worth Rs2,782 crore (273 million kg, worth Rs3,109 crore, in the first half of 1997-98). (gsh)
Comment:
India: Target for cotton exports for 1998-1999 is lowered to $1,600 mil from $1,700 mil for 1997-1998
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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