comments on Draft National Fibre Policy

[I4handloom]

Dear Members,

please find below my comments on the Draft National Fibre Policy. I
have uploaded a file, with full comments, in the Files Section. You
are encouraged to use these comments to sign on a common letter, or
send your response to Ministry of Textiles, directly. I hope you would
be able to respond by Monday evening, 28th June, 2010.

with best regards.

d. narasimha reddy

**********************************************************************************************************************************************

Draft National Fibre Policy, 2010: Comments

Summary

National Fibre Policy is a necessity for India. Government has just
released a Draft National Fibre Policy (DNFP) in June, 2010, based on
the deliberations of eight sub-groups and a 72-member Working Group.

However, pre-policy development process was not representative, while
post-draft policy consultations so far are not wide enough. This draft
fails to chart new frontiers and new directions. Sectoral strategies
are absent. There is no balanced integration of the concerns of
various sub-sectors of Indian textile sector. It is at loggerheads
with the climate change goals of Indian government. There is an over
emphasis in this policy to change the ratio between cotton and Man-
made fibre (MMF) consumption.

Even though there are 7 aims and objectives, one cannot see specific
recommendations that correspond to each of the objectives. There is no
correlation between background assessment, objectives, conclusions and
recommendations.

Draft National Fibre Policy selectively widens and narrows its scope.
In the entire document, not even once there is a mention of the
National Textile Policy. It is at variance with other government
policies. Draft document is a mix of policies, schemes, measures and
programmes - a reader has to search for the policy recommendations.
Structure of the document is not tuned to the requirements of a policy
document. However, certain sections are well drafted, especially by
the sub-groups on Speciality Cotton and Technical Textiles.

There is no specific, path-breaking recommendation to reduce cost of
fibre as a raw material. This Policy is focused more on firm-level
competitiveness, of Modern Automated Indian Textile Industry (MAITI).
DNFP does not come up with any new institutional mechanism that has a
mandate to integrate the concerns of all textile fibres.

By linking the Yarn Advisory Board (with expanded mandate) and Inter-
Ministerial Board on Organic Cotton, with the concerns of handloom
sector, a host of opportunities can be opened up in national and
international textile markets.

DNFP fails to pinpoint the communities, who benefit from this policy.
It has not come up with a coherent strategy, which can address the
issues of farmers. Within farmers, while cotton farmers get more
attention, other farmers who produce various natural fibres, get a
passing mention at best. Cotton seed (availability, prices and
quality) is a major issue for the cotton farmers, which is not
addressed with the same attention as given for MMF.

Draft National Fibre Policy is clearly opting for MMF-related growth
and as such, it cannot be termed as a fibre neutral policy. This bias
needs to be questioned. DNFP’s concentration diminishes on fibres such
as silk, jute and wool. It is much more forthcoming with regard to
Other Fibres (banana, sisal, etc.).

There is inadequate linkage between the policy recommendations and
financial requirements. Allocations towards farmers, as primary fibre
producers, are not mentioned. The fiscal burden of reducing duties on
MMF and subsidizing MMF production has not been mentioned. Impact of
this policy on the national economy needs to be worked out, especially
in relation to energy investments.

It endorses Genetically Modified (GM)/Bt cotton without any substance.
It does not consider Bt cotton-related contamination issues as serious
enough.

Importantly, DNFP does not make any effort to link the policies
related to cotton and speciality cotton (includes organic cotton).
Yet, it has some important recommendations: control of cotton exports,
export duty on cotton exports and constitution of a Inter-Ministerial
Committee of Secretaries. These recommendations are well received by
the cotton-based textile industry.

Handloom sector and its expectations did not matter in the fibre
policy. On this important sector, DNFP merely reiterates the past
positions and schemes of the government. There is no innovation in
ideas, imagination in understanding the issues and adequate response
to serious life and death issues of handloom weavers.

It does not even attempt to understand the conditions of handloom
weavers. It has nothing to say about enhancing competitiveness of
handloom weavers. There is no acknowledgement of the more than 150
percent growth in hank yarn prices, which renders them uncompetitive.

There are various implications with the contemplated changes, and
content of National Fibre Policy. Eventually, genuine and fine cotton
fibre would be accessible only to rich classes, and poor people have
to fend with MMF fibre. 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.

There will be two kinds of environmental 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. Consumers of MMF products would
have serious health problems.

To improve this policy, natural fibre sector should be given special
attention, especially cotton, silk, jute, wool and other non-
conventional fibres including banana. There has to be a long-term
vision and a structured approach to the fibre sector. Finding an
equitable balance between growth of different fibres, and an
assessment of how such a growth would impact on the user industry are
important steps that need to be followed.

National Fibre Policy should include strategies on reduction in cost
of production, promotion of natural fibre growth, enactment of Textile
Fiber Products Identification Act, establishment of a Natural Fibre
Fund and establishment of fibre /yarn price stability mechanisms

Finally, a wider consultative process has to be delineated for the
draft policy document developed by the Working Group, to make it more
effective.