Vadodara, Feb 19: Imports of cotton from China has increased by 26 per cent in the country during the first half of the fiscal year as compared to the corresponding period of the previous year. The imports of textile yarns and fabrics from China into India have also increased by 46 per cent in first half of the financial year. According to Cotton Statistics and News Bulletin, poor quality of domestic cotton, high level of contamination and high manufacturing cost are seen as the main causes for the decline in demand of domestic cotton.The high power tariff, wages and interest rate are the other contributing factors. Against this, in China the power tariff is 6 US cents per unit while in India it is around 11 cents. Interest rates in India are still 3 per cent higher than the global market rates.
The East India Cotton Association (EICA) has suggested through the bulletin that the only alternative for the Indian textile industry is to work for a greater access to global market with the World Trade Organisation (WTO) regulations to come in force in 2005. The Technology upgradation Fund, the new National Textile Policy and the technology mission on cotton are all designed to sharpen the competitive edge of the Indian textile industry and help it emerge as a strong player in the international textile market.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
