India losing cotton market share as prices remain high

LN Revathy Coimbatore | Updated on January 24, 2018

Industry body says removal of duty will increase consumption

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 duty

Urging 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.

Published on July 09, 2015

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