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Confederation of Indian Textile Industry fights its case amid apprehensions

The umbrella organisation for the textile industry has not made much progress, with many sections of the industry terming it as a “non-starter”. Even as certain sectors have adopted a ‘wait-n-watch’ approach, the general consensus is that an all-embracing body is needed to showcase a stronger image of Indian textiles in the international arena. A report by Reena Mital.

The steering committee for the Confederation of Indian Textile Industry was expected to submit its recommendations by mid-October, however, no meetings have taken place after September 11, 2003, when the committee was set up. And sections of the industry are still keeping a safe distance from the federation, with apprehensions running high.

However, Reliance Industries, which has taken the initiative of setting up the organisation, and members of the steering committee remain unperturbed. Speaking to Express Textile, Mr C S Gokhale, president, corporate development, Reliance Industries, said, “There have been certain hitches in the way of submission of recommendations. A general consensus is there, and most of the textile associations have supported the setting up of an umbrella organisation. We still need to do some work with ICMF, as a new chairman is now heading it. But we definitely expect the submissions in November.”

According to sources, the ICMF is divided between two views, one that such an organisation would reduce the importance of independent associations, and the other that individual identity of the associations would remain intact, and an umbrella organisation would only strengthen the interests of the textile industry as a whole. “It looks like the ICMF has not remained as enthusiastic about this set-up as it was initially,” opine sources.

According to Mr V S Chalke, president, Synthetic and Art Silk Mills’ Association (SASMA), and member of the steering committee, “A meeting of the committee will take place within the next two weeks. Meanwhile, most of the associations have completed their pre-budget memorandums, and the same will be discussed and finalised at this meeting. We want to fulfill our aim of submitting a single pre-budget memorandum to the government this year. We have already spoken to the textile commissioner who has been insisting on a single, unified budget proposal from the textile industry.” It is learnt that the textile commissioner, going ahead with his pre-budget exercise, has called a meeting of all sectors on November 28, to discuss the budget proposals.

Mr Chalke said that the general thinking is that the readymade garment (RMG) sector and the weaving sector should take the lead in this organisation. According to Mr Gokhale, “The two sectors that will be the most affected by the quota-free regime after 2004, are RMG and powerlooms. There is a distinct possibility of garments and fabrics from China coming into India, post-2004. And even as textiles remains in the negative list of the FTAs signed by India, this could well be reversed in the years to come.

Where is the Indian textile industry then. Would it be able to survive in this fragmented manner?” He further stated that a number of very important changes are taking place in the international markets, which would affect not just India’s export shares, but also domestic shares. “The US, EU, etc will expand toward inter-regional integration. The Free Trade Agreement of Americas, encompassing North America, South America and the Caribbean countries, will soon become a reality. With these changes taking place, is the industry in its fragmented state confident of facing competition in the international market and in its own domestic market? It is for these reasons that the Indian industry has to unify and become stronger,” avers Mr Gokhale.

Mr Chalke further stated that a number of other issues would be discussed at the steering committee meeting, including a proposal for fixing the yarn rates for a period of three months, rather than changing the same every week or fortnight. “The weavers face problems in pricing their products. Moreover, there is also the issue of yarn supplies that are not always on time. An umbrella organisation is important as it gives the industry a platform to discuss crucial issues affecting the working of various segments.

Besides, anti-dumping and such other actions on Indian textiles, and by the Indian industry are on the rise, and these can be effectively dealt with only if the industry joins hands, and the affected sectors understand the issues of the user sectors and vice versa,” Mr Chalke said.

Commenting on the apprehensions of a section of the industry, he said, “It is not just one company that is setting up this organisation. A number of people from various sectors are very actively involved, and the credentials of these persons are known by the industry. It is not possible for any one person or organisation to then manipulate all the others, who are representatives of the industry.”