‘Adopt cost-effective tech to face global challenges’

Coimbatore: THE textile industry in India should adopt cost-effective technologies to enable them to face the challenges posed by the WTO, the chairman of the Indian Cotton Mills’ Federation (ICMF), BK Patodia said.

Inaugurating a five-day exhibition, ‘Tex Spares 2001’, organised by the Southern India Mills Association (SIMA) here, he said initiatives for newer technologies would be necessary by the year 2004 following the fresh WTO proposals for removal of quantitative restrictions (QRs).

The industry had registered only a 15 per cent increase in exports during the current fiscal, he said adding that unless cost-effective technologies were adopted, it would not be possible to face global challenges. Stating that varying fiscal structures and cost structure imposed by the Government on the industry had become a major obstacle for development, Mr Patodia called upon the Centre to create a level playing field by covering the industry as a whole in all its fiscal policies. The present fiscal policy had created an imbalance among various sectors, he said and asked the Centre to take steps to bring in a uniform tax net at a reasonable level.

ICMF had suggested certain measures to curb imbalances, he said and called for a complete change in Modvat.

Mr Patodia said that the cost of capital, labour and power were much higher than neigbouring countries like Pakistan and Indonesia.

Mr Patodia said the cost of raw materials and machinery wares in the Indian market was comparatively high. This, coupled with other aspects, had hampered development of the industry, he said. Stating that fragmentation of sectors and separate policies covering them were a major cause for concern, he said no sector could survive at the cost of another in the globalisation scenario. He commended the role played by SIMA in cementing the gap among the various sectors of the industry in the south.

He said that the cotton available in the Indian market was not only most expensive, but contaminated. Mr Patodia said that the ICMF sponsored study by the South India Textile Research Association (SITRA), insisted on certain norms on production of quality cotton. Though the Centre had launched Technology Missions, the first two had not done anything towards development, he said, adding that the missions had initiated some steps only after the industry associations’ ‘tenacious approach’.

Mr Vijay Venkataswami, chairman of the show, in his address, said that the all India market for textile spares for the spinning industry was estimated at around Rs 1,000 crore, of which the south accounted for almost 50 per cent. Hundred and sixty participants, including 13 from Gujarat, 19 from Maharashtra, five from Karnataka and three from West Bengal, have showcased their products for the ginning, spinning, weaving, processing, powerlooms, handlooms, knitting and garment sectors in the exhibition.

(PTI)