National fibre Policy briefing paper
I4handloom
the below copied text is part of a briefing paper I prepared on
National Fibre Policy. I can e-mail the entire copy upon request from
you. However, I invite your suggestions and comments on this as well.
with best regards.
d. narasimha reddy
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Pondering Aspects: Cotton fibre for the classes and Man-made fibre for
the Masses
It is evident that MMF production, import and exports are likely to
increase. And, government is determined to encourage such growth.
There are various implications with the contemplated changes, and
supposed content of National Fibre Policy.
There are three kinds of principal implications:
1. Development implications
2. Environmental implications
3. Market implications
1. Development Implications
There is a possibility that the structure of the industry would
change. It would become monolithic from the current diversified
structure. This would have its impact on the employment, which is a
major concern in India. As the table below shows employment currently
is maximum in sectors which are based on natural fibres. With the
growth of MAITI, supported by the growth in MMF, employment is likely
to reduce drastically. Millions of people in India would be forced to
look for alternative employment. Such a scenario was unveiled whenever
the duties of MMF have been reduced. In 1988-89, for the first time,
cotton farmers and handloom weavers started committing suicides,
following 1985 Textile Policy which rationalized excise duties for
MMF. Similarly, in 1999-2000 and later, suicides were repeated with
the rationalization of excise duties on MMF in 1997-98 budget.
Table No.6: Employment in different textile sub-sectors
S. No Different Sub-Sector Million Share% Growth
1 Cotton/Man-made Fibre/Yarn Textile/Mill Sector (including SSI
spinning & exclusive weaving units) 0.94 2.87 0.46
2 Man-made Fibre/Filament Yarn Industry (including texturising
industry) 0.16 0.49 0.08
3 Decentralised Powerlooms Sector 4.86 14.83 0.22
4 Handloom Sector 6.5 19.84 0.50
5 Knitting Sector 0.43 1.31 0.02
6 Processing Sector 0.29 0.88 0.15
7 Woollen Sector 1.5 4.58 1.70
8 Ready Made Garment Sector 5.57 17.00 5.65
9 Sericulture 5.95 18.16 1.75
10 Handicraft Sector 6.57 20.05 1.43
Total Textiles Minus Jute 32.77 100
Source: CENTAD, 2009
2. Environment Implications
There will be two kinds of implications – on environmental geography
and on human beings. Increased production of MMF would increase energy
and chemical consumption leading to natural resource degradation and
pollution. More energy is required to run the automated textile
machinery. India is targeting US$ 115 billion textile and apparel
output by 2012. More than 32 chemicals are used in processing yarn and
textiles by MAITI.
Most of the clothes today contain polyester, elastane or lycra. These
are being projected as cheap and lesser maintenance fabrics. However,
their manufacture creates pollution and they are hard to recycle (with
nylon taking 30 to 40 years to decompose).
According to the most recent studies conducted at the Institute of
Natural Fibres and Nara Woman’s University, Japan, it was found that
man-made and natural fibers in clothes have dramatically different
physiological effect on human body. New and more sophisticated
technologies are being introduced in the textile industry that make
production processes more efficient, more productive, allow for
introduction of new assortment of textile products and new fibers,
improvement of properties of clothes. However, chasing after
technological novelties, one cannot forget about the human, because it
is a human who is a recipient of the final product. No product should
cause a negative effect on human organisms. Each new technology using
new modifying chemicals should be evaluated for the safety in direct
contact with human skin. Heat and moisture transport between human
body and its surrounding is a result of processes that run on the
surface of skin and lungs, processes that arise from conduction,
convection, radiation and evaporation. The contribution of numerous
processes to the whole system differs for various surrounding
conditions. Apparels made of natural fibres not only influence
favorably to some of the physiological factors of our body but also
ensure safety during sunny days protecting us against hazardous
ultraviolet radiation.
In India, a tropical country, consumption of MMF-based clothes,
especially by poor, who work in extreme conditions, is likely to lead
to health hazards.
3. Market Implications
India has strength in natural fibre-based textile production. Most of
its export products are based on natural fibre. India produces them at
cheaper rates. It is a world leader in many of these fibres. On the
other hand, there are many countries whose production is more than
India in MMF. Definitely, the competition is very high, especially
from China and developed countries. India would lose its USP by
climbing down the natural fibre ladder, and by trying to create space
for itself in MMF. MMF prices are also highly fluctuating depending on
refinery capacities and other backward linkages.
India would become a net importer of MMF, crippling the domestic
industry. India’s imports of textiles and apparel increased by 65
percent during the 1997-2001 period, principally of cotton yarns,
filament yarn, spun blended yarn, made-ups, and ready-made apparel.
Yarns and fabrics were the principal imports, accounting for over 90
percent of the total textile imports in 2000. Manmade-fiber yarn
accounted for about 80 percent of total yarn imports in 2000. India’s
principal sources of textile and apparel imports include Taiwan,
China, and Korea (together accounting for about 40 percent of the
value in 2000). With free trade agreement with ASEAN countries, these
poly fibre and poly-fibre based textile imports are likely to
increase.
In 2000, the US imported US$ 57.2 billion of apparels with average
unit values equal to US$ 3.57 per sme. 56% of these, valued at US$
32.01 billion were cotton apparels, and only 34% were mmf apparels.
It would also, however, raise the prices that 6-7 million mostly
village-dwelling, mostly poor weavers pay for their yarn and,
according to a recent multi-market study, possibly cut their net
incomes by about 3 percent.
Conclusions
Most of the macro-indicators cited as evidence for growth in MMF are
quite crude, and are of little help to stakeholders in identifying
what needs to be done to create a better climate. While the macro
evidence is useful as background and motivation for the rest of our
work on National Fibre Policy, it suggests the need to delve at a much
more micro level, and to survey small producers and firms to
understand the rich differential relationship between Indian textile
growth and national fibre policy.
Given the above, objectives that require support can be:
i. Improvement in the levels of natural fibre production, and
earnings, particularly of the small producers (farmers, handloom
weavers and garment makers), through measures like upgradation of
skills and technologies and producer-oriented marketing, etc.;
ii. Creation of additional employment opportunities on a dispersed and
decentralised basis;
iii. Significant contribution to growth in the natural fibre-based
yarn manufacturing sector through, inter alia, fuller utilisation of
existing installed capacities;
iv. Establishment of a wider entrepreneurial base through appropriate
training and package of incentives;
v. Creation of a viable structure of natural fibre based textile
sector so as to progressively reduce the role of subsidies; and
vi. Expanded efforts in export promotion.
D. Narasimha Reddy