national fibre policy dnr
Post on 19-Jun-2015
197 Views
Preview:
DESCRIPTION
TRANSCRIPT
National Fibre Policy:
Understanding the Context and
Implications
Dr. D. Narasimha Reddy
E-mail: nreddy.donthi@gmail.com
Present Situation
1500000
2000000
2500000
Volumes in Rs. Crores
Textile and
apparel industry
in India is
Rs.2,20,500 crores
0
500000
1000000
Global Market Indian Market
Global market is
Rs.20,25,000
crores
Types of Fibres
Natural fibres
• Cotton
Natural fibres
• Mesta/ Kenaf(Patsan)
• Roselle (Patwa)
Man-made fibres
• Acetate
• Nylon
• Polyester
• Acrylic
Double blends
• 65% polyester/ 35% cotton
• 70% acrylic/ 30% Avril rayon • Cotton
• Silk
• Jute
• Wool
(Patwa)
• Sunhemp(San)
• Ramie (Reha)
• Sisal
• Pineapple
• Banana
• Palm
• Coconut
• Acrylic
• Rayon
• High modulus Rayon
• Spandex
30% Avril rayon
• 80% cotton/ 20% wool
• 80% Acrylic/ 20% cotton
• 55% polyester/ 45% rayon
World Fibre Consumption
40
50
60
70
0
10
20
30
Year 1950 1960 1970 1980 1990 2000 2008
Global Fibre
Consumption
Fibre
Consumption to
increase, with the
growth of global
textile market62.6 billion
92.37 billion kgs in 2011textile market
9.2 billion kgs in 1950
billion kgs in 2008
2011
Indian Fibre
Consumption
Fibre
Consumption to
increase, with the
growth of
domestic and 1.2 billion
2.0 billion kgs in 2020
domestic and
exports textile
markets0. 6 billion kgs, now
billion kgs in 2012
kgs in 2020
World Fibre Composition
Man-made fibres
Natural Fibres
Indian Fibre Composition
Man-made fibres
Natural Fibres
Progression to Policy
Market Fibre Price FibreMarket Growth
FibreConsumption
Price Competition
FibreComposition
Why National Fibre Policy?
To reduce cost of production
To influence the textile product range
To increase the share in the global textile markets
To increase production of man-made fibres
Cotton Supply Chain
• Farming
• Ginning
• Trading• Packaging
Disaggregation
• Handloom
• Mills
• Powerlooms
Aggregation
• Packaging
• Spinning
• Trading
• Powerlooms
• Hosiery
Wholesale/Retail
Conflicting Expectations:
Cotton Supply Chain
Farmers
• Pricing
• Cost of production
Processors
• Lower procurement price
Users (handloom)
• Access to yarn
• Rising prices
Users (modern)
• Rising prices
• Blendsproduction
• Risks
• Agri-technologies
• Cotton Exports
price
• Higher market price
• Technology
• Taxation
• Yarn Exports
• Rising prices
• Imitation products
• Synthetic/blends fibres
• Yarn Exports
• Blends
• Fabric imports
• Export risks
• Yarn Exports
• Want domestic market control
Silk Supply Chain
• Silk worm seed producers
• Farmers/ rearers • Twisters
Disaggregation
• Handloom
• Mills• Powerloomrearers
• Extraction
• Trading
Aggregation
• Twisters
• Reelers
• Traders
• Powerlooms
Wholesale/ Retail
Conflicting Expectations:
Silk Supply Chain
FibreProducers
• Pricing
Processors
• Decreasing supply
• Cost of
Users (handloom)
• Access to yarn
Users (modern)
• Rising prices• Pricing
• Cost of production
• Risks
• Agri-technologies
• Marketing Infrastructure
• Cost of production
• Technology
• Taxation
• Access to yarn
• Rising prices
• Chinese yarn and fabric imports
• Artificial silk products
• Rising prices
• Chinese yarn and fabric imports
• Export fluctuations
• Want domestic markets
Conflicting Expectations:
Fibre Supply Chains
Handloom WeaversMechanised, automation-
based weavers
Fibre Producers Fibre Processors
Policies
Fibre Supply Chains: Policy Vaccuum
Indian Textile Policy, 2000
Technology Mission on Cotton
National Jute Policy
No Policy on silk, wool, organic cotton, MMF, etc.
Fibre Supply Chains: No National Policy
• Ministry of Textiles
• Ministry of Commerce
National Foreign Trade Policy
Indian Textile Policy
• Planning Commission
• Ministry of Agriculture
Policy
Five year Plans
No Policy with fibre
focus
National Textile Sector
Strengths
Diversity
Complete supply chain in all fibres
Huge domestic markets
Weaknesses
Infrastructure support
Working Capital Support
Rigid practices
Asymmetric flow of information
Opportunities
Small and flexible production
Demand for environment-friendly production and
consumption
Threats
Cheap Imports
Firm-level policies
Wrong subsidies
Automated, large textile machinery
Fibre Supply Chains: No State Policy/
Department
• Wool• Silk
Sericulture/
Agriculture Dept.
Animal Husbandry
• Jute• Cotton
Dept.
??Agriculture
National Fibre Policy
Employment
EnvironmenSustainable
10 crores on natural fibres
Environment
Sustainable Textile Growth
Current Employment
Cotton
Silk
• 40 lakh farmers
• 560 lakhs in others
• 50 lakhs in sericultureSilk
Jute
• 50 lakhs in sericulture
• 30 lakhs in other
• 40 lakh families
• 2.5 lakh workers
• 20 lakh sec/tertiary
Suggested: National Fibre Policy
To reduce cost of production
To promote growth of natural fibres
To support measures that
To increase the share in the global textile markets
To support measures that address kinks in fibre supply chains
Suggested National Fibre Policy:Bring out a Textile Fiber Products Identification Act
Establish a Natural Fibre Fund, to support lakhs of livelihoods
Increase the targets for natural fibreand fabric production through environment friendly methods
Establish price stability mechanisms
Thank You
Dr. D. Narasimha Reddy
E-mail: nreddy.donthi@gmail.com
top related