October 20, 2015
Spinning mills in the region have alleged that Chinese yarn buyers and traders are crushing the Indian yarn manufacturers by forming a cartel. Hence they have urged the Union Textile Ministry to allow them to open and operate common selling offices or facilitation centres in China to overcome the crisis.
This would provide close interaction with Indian industrialists and would avoid exploitation by buyers, besides strengthening Indian players with updated and constant market intelligence.
In a letter to Union Textile Secretary, S.K. Panda, Indian Texpreneurs Federation (ITF), a body of spinning mills in the region, urged him to facilitate the process and help in the move, the expenses of which would be borne by the industry stakeholders.
Urging to organise a meet of yarn and cloth manufacturers of South and North separately, ITF Secretary, Prabhu Damodaran said that the Federation could take the lead in inviting all the Southern States, in which secretaries and joint secretaries would participate.
Instead of waiting for mega trade pacts to happen, the Ministry, in coordination with the Commerce ministry, had to initiate textile-specific trade pact quickly with various untapped markets, he said.
Exports of cotton yarn and fabrics showed a positive growth of 5 per cent, amongst 25 sectors showing negative growth in September and with big opportunity and huge capacity within India, a little push and coordinated efforts by the Ministry would help beat the downtrend in export and help spinning and garment sectors to come out of current
trend of loss, Prabhu said.