India is losing its market share in cotton and man-made fibre (MMF) categories, as most of the products are made of coarse count yarn and MMF prices are at least 25 per cent higher than rates prevailing in competing countries, say textile industry sources.
High dutyUrging the Centre’s immediate intervention for improving India’s stance in the global market, the Indian Texpreneurs Federation (ITF) pointed out that of the total 864 textile and apparel commodities traded in 2012, India’s share was less than 1 per cent in at least 317 commodities.
“This is because of the high duty structure on MMF and basic customs rate,” says D Prabhu, Secretary, ITF.
The Federation has appealed to the State Textile Department to take up this issue with the Centre.
Dispelling fears that any sop extended for synthetic fibres would affect cotton growers in the country, he said, “Cotton consumption is on the rise and removal of duty (on MMF) would tend to increase cotton consumption further as demand for cotton-blended fabric is growing exponentially.”
Cotton fibre share, which fell from about 50 per cent in the late 1980s, is now showing signing of stabilising at around 30 per cent with large cotton supplies around the world.
Taking a dig at consumers’ understanding of the fibre economics, he said, “It is all about feel, drape, look, colour and the wow factor.”
Blends like cotton rich polyester, viscose, bamboo, modal, etc, are gaining traction to take advantage of the feel of cotton and functionality of MMF. Therefore, the more MMF blends that the country spins, more cotton will be consumed.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.