Recovery in developed nations provides opportunity
Year 2013 was the recovery year for Indian textile industry after sluggish financial years 2011 & 2012. The time was greatly supported by worldwide lower cotton prices, lower raw material price volatility, highest cotton crop production in 2012
– Sunil Kumar Sharma, DGM, Loknayak JPNSSSG Ltd, Nandurbar, Maharashtra
Year 2013 was the recovery year for Indian textile industry after sluggish financial years 2011 & 2012. The time was greatly supported by worldwide lower cotton prices, lower raw material price volatility, highest cotton crop production in 2012 and good export demands in yarn fuelled by China market with a strong dollar pricing. The country crossed the export targets significantly along with great support from domestic market, which helped Indian textile industry recover from the nightmare of year 2011 when its backbone of industry was almost cracked due to very high fluctuation in cotton pricing.
The year 2013 is not only important for financial recovery but it will also remember for its great heritage as some of most popular textile policies declared by the various state governments of Maharashtra, Gujarat, Madhya Pradesh, Karnataka & Rajasthan and RR-TUFS scheme by Govt of India to motivate the investment in textile sector. Hence now it is the time for a good valediction of year 2013 for a better future of textile industry.
Indian textile industry is looking hopefully for coming year 2014, with a strong back support of last fiscal year. India is second largest cotton producing country and also second largest yarn producing country in the world. Our cotton bales production significantly increased in last few years, however we still are behind in cotton yield per hectare. In last few years cotton crop has become a profitable agriculture commodity, which inspires cotton growers to sowing more cotton. Cotton Seed developing companies are also working very hard to develop high yield cotton seed to obtain higher cotton production per hectare. Hence it seems that there is significant scope for increasing the cotton bales production in country. If present trend is sustained soon India will produce more than 400 lakh bales per year. At the back of good monsoon all over country, now cotton production is expected around 382 lakh bales (ie, each bale of 170 kg) for year 2013-14. Looking to the continuous efforts in field of cotton growing and increase in cotton production, India has great potential to become top most cotton fibre producing country in world.
Now have a look at the world top most cotton production country, China, which is suffering with their huge carry forward stock, ie, Ending stock of year 2012-13 is 10440 thousand metric tons and China is expected to have an ending stock of 12520 thousand metric tons in year 2013-14. While cotton bales consumption of China is reduced by approximately 5 per cent in year 2012-13 as compared to previous year. This huge carryforward cotton stock has put huge pressure on Chinese government, forcing it to discourage the cotton bales import. Not only carryforward stock of China increases but world cotton stock is also reaching an all-time high level (ie, Projected world cotton stock for year 2013-14 is 18.27 million metric tons which is almost 20 per cent higher as compared to last year) and world ending cotton stock for 2014 is again projected as 20.3 million metric tons.
Highest cotton bales production & stock will lead to less ups & downs in cotton pricing and will definitely support spinning industry for easy & better quality product availability at throughout the year. Mostly in Gujarat, Maharashtra & MP many ginning factories are going to take further expansion in spinning sectors to get the maximum benefit of new textile policy and value addition. The revised restructure technology fund scheme (RR-TUFS) by government of India will also boost new investment in textile sector. Hence it is expected to increase the spindleage capacity in coming year.
In year 2013 our yarn export achieved a new height with the support of European & Chinese market demand. Labour cost in China is continuously increasing a
