Manmade fibre industry seeks govt help

Soaring cotton yarn prices followed by 25-40 per cent rise in man-made fibres (MMF) across various categories since October 2010 is making the export industry see red.

Export of MMF textiles declined by one per cent to Rs 3,852 crore during the second quarter ended June 2010, compared to the corresponding period in the previous year. The export scenario worsened with exports dropping by around 20 per cent to Rs 3,464 crore in the second quarter ended September 2011 as against Rs 4,910 crore during the same period last year.

The Indian MMF export sector was one of the few segments that was not affected by the global economic crisis. Exports during 2009-10 had registered a growth of nearly seven per cent at Rs 16,900 crore.

Industry insiders said the decline in MMF exports was because of significant rise in raw material costs, weak demand in Dubai and introduction of anti-dumping duties for synthetic and polyester yarn in consuming countries like Peru and Brazil coupled with an appreciated rupee.

“Polyester and viscose fibre and yarn prices have been increasing on a day to day basis. Manufacturers are also faced with erratic and unreliable supplies from fibre companies. This is making it difficult for exporters to plan their shipments and to adhere to delivery schedules,” said VK Ladia, chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC).

Ladia said the industry will not be able to meet the MMF export target of $370 crore set by the government.

“I do not expect the just-ended quarter (Oct – Dec 2010) to be any better and the last quarter will not be able to make up for the loss. We will not be able to meet the target and our exports will be around $ 340 crore.”