The government is planning to set up a yarn bank in all powerloom centres and clusters, so that weavers could get their raw materials in enough quantity and at a reasonable price.
This would also help weavers to plan their production program in advance. Each yarn bank would cost around Rs 2 crore.
The government would contribute 50 per cent as seed money and remaining 50 per cent would be borne by respective powerloom clusters, A B Joshi, textile commissioner announced at the inauguration of Texpo 2011.
As cotton prices have doubled since last August and petrochemicals prices are also rising, all yarn varieties have become costlier and sharp fluctuation in prices has prevented loom owners from planning their production. Setting up of a yarn bank, which is still in primitive stage, is expected to provide yarn to buyers at a stable price.
Yarn producers will sell yarn to the bank and buyers can approach the bank when they need it. A nodal agency could be appointed for managing the bank, said a person familiar with the development. The agency will have to make arrangement with warehouses to store the yarn sold by producers. The bank is expected to safeguard the interest of yarn manufacturers and buyers in case of sharp fall in prices.
Bank would work to bring balance between interests of sellers and users of yarn.
Powerloom contributes 80 per cent to the total production of fabric in India. Overall, there are 2.25 million powerlooms all over India, out of which more than 50 per cent powerlooms are in Maharashtra. Due to the Textile Upgradation Fund scheme, modernisation of powerloom industry was rapid, as a result, quality of powerloom fabric improved in India.
“Currently the Indian powerloom sector is in competition with China as China is facing shortage of cotton and cotton yarn. Presently, India’s market share in world’s textile and clothing market is around 4 per cent, which is likely to be doubled by 2015,” said Bharat Chhajer, chairman, Powerloom Development and Export Promotion Council.
