Industry body SIMA and Powerloom Development and Export Promotion Council (PDEXCIL) have joined hands to study the domestic fabric market and give feedback to the cotton-based spinning and powerloom sectors and the Government, in view of the recession being faced by the two sectors.
In this regard, they held an interactive meeting yesterday to discuss weaving yarn market and fabric market conditions and to devise a methodology to study the market behaviour, particularly in the domestic market, SIMA sources said.
Members voiced concern about the unhealthy competition created both in the domestic and export markets and expressed hope of reopening of the dyeing units in Rajasthan.
They also expressed hope that the recently announced MEIS and IES export benefits for fabric and other finished goods might improve the market condition in the coming months, the sources said.
Participants felt that all textile manufacturers in Tamil Nadu should focus making future investments only in wet processing and further value addition to sustain the viability of 47 per cent of the spinning capacity and 22 per cent of the power loom capacity in the country.
They decided to appeal to the Centre and State governments to give necessary assistance to create required processing capacity within Tamil Nadu.
Both sectors have been facing severe recession in the last 18 months due to the glut in the global market and higher duties imposed on Indian textile products when compared to other textile manufacturing countries, they said.
The mass closure of dyeing units in Erode and other parts of Tamil Nadu forced weavers in the state to process the fabric in upcountry resulting in high transport cost and increased lead time, thus making them uncompetitive.
SIMA deputy chairman, P Nataraj; PDEXCIL chairman, M Duraisamy; Vice-Chairman, Confederation of Indian Textile Industry (CITI), J Thulasidharan were present during the discussion, the sources said.
