The Hindu Business Line : The worst could be over for textiles

According to a textiles equipment manufacturer, “inquiries” have risen sharply since April, after a lull in the second half of the previous fiscal, pointing to a recovery in this sector.

This could spell relief for the estimated 35 million workers associated with the industry. Indications of a revival are manifest in the latest data on industrial production.

For April-May, textiles products output was 11.5 per cent higher than in the corresponding period last year, though cotton textiles continued its 2008-09 trend of being in negative territory.

Products growth

Textiles products registered a growth of 3.7 per cent in 2008-09 and 2.2 per cent in the second half alone. Cotton textiles were down 2.8 per cent in 2008-09 and registered a negative growth of 5.7 per cent in the second half.

A city-based readymade garments exporter said that ‘A’ grade vendors might pull through till September, since the orders will continue to go to them. The situation in the US continues to be grim, he said.

According to Mr Jayaram K.R. of the Garments and Textiles Workers Union, “The industry has exaggerated the extent of the crisis as a pretext to lay off middle level factory staff and force workers to take wage cuts. The situation in the industry was much worse when the rupee was appreciating. Now, the order book position is not as bad. The impact of the price rise is also being felt in this situation.”

Union survey

He points to an informal survey conducted by the union, according to which, three-fourth of the patients, who visited the city’s ESI Hospital, were garment workers, as their nutrition levels being impacted in the current situation of rising food prices and precarious job security.

The unfolding crisis comes against the backdrop of the Union Government announcing a “100-day” plan to transform the textiles sector, which accounts for 13.5 per cent of merchandise exports and 4 per cent of gross domestic product.

Within this period, the Ministry plans to inaugurate two integrated textile parks.

Investment under TUFS

The policy paper says that the scope of the Technology Upgradation Fund Scheme (TUFS) will be extended to powerlooms and handlooms.

Most of the capital invested under TUFS has gone to the mills sector. According to a recent statement by the Textiles Minister in Parliament, Rs 16,429 crore was used in 2008-09 for capital infusion by the textiles mills, while powerlooms, handlooms and the garment industry used TUFS funds amounting to Rs 190 crore, Rs 324 crore and Rs 3,288 crore, respectively.

The mills sector accounts for 3.3 per cent of textiles output, while powerlooms, including hosiery, account for 83 per cent and handlooms another 12 per cent.