Textile exports: growth prospects hinge on proper energy supply

January 24, 2013

TEXTILE INDUSTRY
TEXTILE INDUSTRY

The textile industry circles said on Wednesday that possibility of half a billion dollar growth in textile industry exports were very much likely with uninterrupted energy supply to the industry. According to them, the overall growth may have been much impressive in case there was uninterrupted energy supply to the industry.

“It would have been $1.5 billion in case there was a flow of electricity and gas to the industry during December,” said one industry analyst, adding: “The exports stood around $1.5 billion during the month of November when the energy supply was yet better against the month of December.”

It may be noted that both gas and electricity supply has been dismal throughout the month of December. Gas supply to the Captive Power Plants was very low due to high domestic pressure with the severity of the winter season. So much so, the electricity shortfall triggered when supply was totally denied by the Ministry of Water and Power from 22nd December. Ultimately, both the Prime Minister and the President intervened and the industry started receiving 16 hours a day supply.

The industry sources have pointed out that electricity supply to the textile industry is likely to be improved by the end of January when canal desilting campaign would be over and hydel generation would be on full swing. However, the industry is highly perturbed over 50 percent closure of thermal generation due to short supply of furnace oil.

The industry was the prime target of the Ministry of Water & Power once there was acute shortage. The ministry compromised with the industrial growth of the country and preferred to supply energy to domestic consumers. Textile industry sources apprehended that the overall exports are likely to fell short of previous highest level of $14 billion on the year end. According to them, there is bullish demand of cotton yarn in China and the industry can easily earn $1.5 billion per month subject to uninterrupted energy supply to the units.

Textile exports during the first half of current fiscal have registered 8.5 percent growth in value terms to $1 billion against $940 million in the corresponding month, showing bullish trend in exports of cotton yarn and yarn other than cotton yarn.

In quantity terms, exports of yarn other than cotton yarn remained bullish showing growth of 69.8 percent in December 2012, followed by 51.4 percent in cotton yarn, 18 percent in towel, 12 percent in tents, canvas & tarpaulins, 11.1 percent in readymade garments and 2.7 percent in knitwear. However, exports of cotton carded or combed declined by 87.9 percent, followed by 42.8 percent in raw cotton, 35.6 percent in art, silk & synthetic textile and 1.8 percent in cotton cloth.

Courtesy: BR

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