More cotton for Punjab textile sector this year

Punjab's textile industry would consume about 20-22 lakh bales this year, up from 19 lakh bales it needed last year, on account of massive capacity expansion over the last one-and-a-half year.

"It (consumption) will be purely because of large scale investment by the industry in increasing the spindles capacity in order to cash in on the growing demand for apparel and garments," Vardhman Textiles's Corporate General Manager I J Dhuria said.

According to trade analysts, the textile industry of Punjab has added 4 lakh spindles during the last one-and-half year and is expecting to add 4 lakh more spindles in the next one year.

"The capacity expansion taking place in Punjab has been one of the highest ever witnessed by the industry," an analyst said, adding that majority of the units went for expansion in order to avail the benefits of TUF scheme.

Punjab has a capacity of almost 22 lakh spindles for producing fabric and yarn. The industry sources cotton mainly from Bathinda and Abohar.

"Industry likes to procure cotton for its own consumption from the state itself as it will get set off against the VAT paid on cotton. Otherwise, we will have to shell out CST at a rate of 3 per cent, which will add to the cost of production," said Dhuria.