National Fibre Policy: Protecting the Interests of Handloom sector

[I4handloom]

Dear Friend of handloom sector,

please find this note, which should help you in giving inputs and play
appropriate role in enabling the inclusion of handloom sector.

I would come back to you regularly on this, as we move forward.

with best regards.

d. narasimha reddy

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National Fibre Policy: Protecting Interests of Handloom Industry
Note


Background

The Indian Textiles and Garments (T&G) sector has envisioned a long-
term growth plan to attain a market size of US$ 115 bn, an export
target of US$ 60 billion so that it can achieve a global market share
of 9% (from the present share of 4 %) in 2011-12 by attaining an
annual growth rate of 16%. But, the average annual growth rate
recorded for Textiles sector as per the IIP (total textiles) data
during the period 2004-05 to 2007-08 is only 8.35%. However, the
growth rates for import and export of yarns during 2006-07 have
recorded 15.2% and 55.7% respectively as compared to the previous
year, while the average growth rates in imports and exports of yearn
for the period 2003-04 to 2006-07 were 10.8% and 29.13% respectively,
indicating heterogeneous trends in the fibre scenario of the country.
But, as per estimates, the projected additional requirement of fibre
during 2011-12 is about 4,194 Million Kg. as compared to 2006-07.
Thus, it is evident that there are intrinsic issues to be resolved in
the fibre front for augmenting the production performance of the
value added segments of the textiles value chain.

Natural fibre sector of India requires special attention, especially
cotton, silk, jute, wool and other non-conventional fibres including
banana. Concerted interventions may be required both from the industry
in terms of augmenting investment and from the Government side in
terms of support mechanisms both fiscal and non-fiscal to attain
growth. This would result in increasing fibre availability so that the
ambitious growth target for the T&G sector can be achieved. Hence, it
is imperative to have a long-term vision and a structured approach to
the fibre sector so that the envisioned production of textile items
across the textiles value chain can be attained.

Government is taking steps to formulate a Comprehensive Fibre Policy
(natural and man-made) with an objective to provide a sustained growth
of both the fibre producing as well as the fibre consuming segments of
the T&G sector. It has already constituted a Working Group and has
also initiated a study for the purpose.

Given this, there is a need to examine the issues involved in devising
the policy by looking into the various issues of inter-play in the
textile sector including the fibre situation in the competing
countries. It is also important to document the needs and concerns of
the handloom industry which can be resonated in the consultation and
discussions on National Fibre Policy. Handloom sector as a big user of
natural fibres, has long standing issues with regard to the access,
especially in relation to cotton, silk, jute and wool. Handloom sector
has also the necessary wherewithal to explore the potential usage of
other natural fibres such as hemp and banana. This note is a first
attempt in this direction.

Linking Handloom Industry

There is a need to link the concerns and aspirations of handloom
sector with regard to accessibility of natural fibres such as cotton,
silk, jute and wool. Promotion of other natural fibres such as hemp
and banana can be facilitated by handloom sector. Linking the growth
of natural fibres with handloom sector is likely to increase
employment and gross natural product.

To enable this linkage, it is important to have detailed interaction
with key players in the industry and the decision makers. Before,
necessary information has to be gathered by interacting with all the
stakeholders concerned with the natural fibre production and
consumption. Such information would help in evolving a Comprehensive
Fibre Policy (CFP) and also formulate a roadmap for facilitating the
growth of the natural fibre sector. Natural fibre is a potential
segment of the Indian textile sector.

Handloom sector needs to examine the inter-play between the demand and
supply mechanisms in terms of industry parameters like imports,
domestic production, price, tariff and incentive issues, and factors
determining the flow of investments for production of adequate fibre,
both in the immediate future and also with a long-term view.

Important challenge in this process is to find an equitable balance
between growth of different fibres, and an assessment of how such a
growth would impact on the user industry. Given the long term
implications of the public investment on the prescriptions of such a
policy, it would be imperative that an arena for discussions is
opened, wherein all stakeholders would have the facility to bring in
their perspectives, opinions and arguments.

As a substantial segment of Indian textile sector, and a major user of
natural fibres, handloom industry has the necessity to bring its
concerns to the fore. Cotton, Silk, wool, jute and other natural
fibres are important raw materials on which the handloom industry
production is dependent. Organic cotton and organic fibre production
supply chains are also eagerly looking forward to linkages with
handloom industry in order to respond to environmental standards.

Further, there is a need to delineate a wider consultative process for
the draft policy document developed by the Working Group on National
Fibre Policy, constituted by the government. This would help in
collecting various viewpoints and strengthening the acceptability of
the National Fibre Policy. Through such a process, various
stakeholders of the fibre policy would be able to strengthen the
policy, which would help in achieving the objective of the policy to
enable the growth of Indian textile sector.

Cotton is a major natural fibre, and the biggest user of this fibre
has been the handloom industry. Similarly, silk, jute and wool are
used to the maximum extent by the handloom weavers.

Being an important segment of Indian textile industry, handloom
industry has major stake in the growth of the natural fibres, and as
such becomes an important stakeholder in any process that deals with
the growth of natural fibres.

In this regard, I have following suggestions:

1. Enabling the representation of handloom sector in the working
groups on natural fibres, as part of the Working Group on National
Fibre Policy
2. Active solicitation of opinions and perspectives from different
areas of India, where handloom production is substantial
3. Provision of information on the progress and meetings of the sub-
group to us and/or any other representative of handloom industry
4. Organising discussions with representatives of handloom industry

I am undertaking this exercise with the sole purpose of providing
necessary inputs in the formulation of a comprehensive national fibre
policy. I hope that this process would help in developing medium to
long-term policy instruments that would ensure the availability of the
raw materials like cotton, silk, jute, wool and banana etc. at
affordable price for small producers, nee handloom weavers, and
ascertain the investment and other instruments for meeting the
required growth rates in the fibre supply chains leading to handloom
industry and beyond.

Dr. D. Narasimha Reddy
Mobile: 9010205742
E-mail: nreddy...@gmail.com

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