'Woollen processing units must modernise'

TRADE TALK: JAGADIP NARAYAN SINGH

Textile Commissioner Jagadip Narayan Singh in conversation with Dilip Kumar Jha.

How has the domestic wool sector been doing?

India ranks seventh in raw wool production, accounting for 1.8 per cent of the total world production. The sector employs about 40 lakh people with 3.2 lakh weavers spread across the country.

There are about 718 woollen units in the organised sector and many more in the unorganised sector. Ludhiana leads with 225-240 units in the decentralised hosiery and shawl sector.

The installed capacity of the industry is about 6.04 lakh worsted spindles, and 4.37 lakh non-worsted spindles. The annual production of woollen yarn and worsted yarn increased nominally by 1 per cent and 0.75 per cent, respectively and woolen/worsted fabric production declined by 0.99 per cent during the first three years of the Tenth Plan.

The stagnating growth, however, is not restricted to India but is a global phenomenon owing to global warming and the increasing functional flexibility of man-made fibres.

What is the current status of domestic availability of wool?

The woollen industry requires about 135 million kg of wool annually, of which, only 55 million kg is produced locally and the balance "" 47 million kgs of apparel grade and 33 millionn kgs of carpet grade "" is imported.

Apart from manufacturing woollen apparel, India earns a lot through value addition. As against imports of Rs 869 crore worth raw materials in 2004-05, exports of finished goods amounted to Rs 5000 crore.

What is the investment trend in this sector?

The stagnant wool fabric demand has not motivated private players to go in for huge investments. However, the expected boost in domestic demand owing to higher disposable income of consumers is cause for optimism.

The demand for Indian woollen carpets has been growing by 30 per cent growth annually and, thus, offers immense opportunity to import quality grade wool and concentrate on value addition.

While the organised composite woollen mills are expected to modernise themselves availing the benefits of TUFs, the major thrust in the 11th Plan is on the development of the decentralised woollen textile and carpet industry.

Another thrust area is to set up grading plant for the domestic wool inspite of subjectivity like yield, staple length, colour, crimp, tenacity etc. By grading of Indian wool, it may be possible to make good carpet yarn by blending within different Indian breeds.

Any dramatic technological change in the sector?

Today, global competition is dictating the Indian woollen sub-sector and they must modernise as rapidly as the other sub-sectors of the Indian textile industry are doing.

So far, eight small sector units have modernised their scouring and combing operations under the TUFS, while 49 smaller weaving, spinning and knitting units have also upgraded their technology. Many larger units have also undergone substantial technological upgradation.

What is the wool price outlook for the next one year?

The current domestic price variation in the range of 5-10 per cent for indigenous wool is expected to continue in the near future too. But, price may vary between 15 and 20 per cent in case of carpet grade imported wool.