SIMA, PDEXCIL join hands to study fabric market behaviour

The predominantly cotton-based spinning and powerloom sectors across the nation have been facing severe recession during the last 18 months due to glut in the global market and higher duties imposed on Indian textile products than in other textile manufacturing countries.  The mass closure of dyeing units in Erode and other parts of Tamil Nadu has forced weavers in the State to process fabric in upcountry centres, resulting in high transport cost and increased lead time.

SIMA-Natarajan
Mr. P. Nataraj, SIMA Deputy Chairman

It is against this background that the Southern India Mills’ Association (SIMA) and the Powerloom Development & Export Promotion Council (PDEXCIL) have decided to join hands to study the fabric market on a continuous basis and give feedback to the spinning and powerloom sectors and also to the Government. Both of them jointly convened an interaction meet at SIMA premises recently to discuss the weaving yarn and fabric market condition and also devise a methodology to study the market behaviour, particularly of the domestic market.  The meeting was largely attended by the members of both the organizations, particularly powerloom weavers from major clusters of Tamil Nadu.

The meeting expressed concern over the unhealthy competition created both in the domestic and export markets.  It was hoped that the reopening of the dyeing units in Rajasthan and the recently announced MEIS and IES export benefits for fabric and other finished goods might improve the market condition in the coming months.  It was also felt that all the textile manufacturers in Tamil Nadu should focus on 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 powerloom capacity in the country.  It was decided to appeal both the Central and State Governments to give necessary assistance to create the required processing capacity within Tamil Nadu.

The meeting was addressed by Mr. P. Nataraj, SIMA Deputy Chairman, Mr. J. Thulasidharan, Vice-Chairman, Confederation of Indian Textile Industry (CITI), and Mr. M. Duraisamy, Chairman, PDEXCIL.