India's yarn and fiber production decline causes manufacturers to worry

India’s decline in the percentage growth in yarn and fiber production during the 11th Five Year Plan (FY2007-08 to 2011-12) has caused concern among manufacturers in India’s largest man-made fabrics center.

According to the statistics of the Indian Association of Silk Weaving Industry (FIASWI), the percentage growth rate of man-made filament yarns decreased from 7% in FY 2007-08 to 5.76% in FY 2011-12, and the percentage growth rate of artificial fabrics is from The 11.23% in the fiscal year 2007-08 fell to 11.23% in the 2011-12 fiscal year.

In the fiscal year of 2008-09, the total output of filament yarns reached 1.4 million tons, and it was 1.5 million tons in fiscal year 2009-10, an increase of 7% year-on-year. In the 2010-11 fiscal year, the production of filament yarns reached 1.6 million tons, and the output in the fiscal year 2011-12 was 1.4 million tons, a decrease of 5.76% year-on-year.

According to data from the Indian Federation of the Silk Weaving Industry, the shrinkage of man-made filament yarns, fibers and fabric production is due to the increase in the consumption tax of the central government. Consumption tax increased from 4% in fiscal year 2008-09 to 8% in fiscal year 2009-10, and again to 10% in fiscal year 2011-12.

Jariwala, president of the Indian Silk Weaving Industry Federation, said that the increase in consumption tax is absolutely the only reason that the production of artificial filament yarns, fibers and fabrics has declined. On the one hand, the government talks about increasing the output of synthetic fabrics. On the other hand, the industry has to pay 10% of the consumption tax. The department requires special treatment. During the 11th Five-Year Plan, the export volume of India's man-made fiber industry showed a good result. Exports of man-made fabrics reached Rs. 54.92 billion in fiscal year 2007-08, and increased to Rs. 111.71 billion in 2011-12, an increase of 103%.

In the fiscal year 2007-08, yarn and fiber exports reached Rs. 56.36 billion, which increased to Rs 10.157 billion in the 2011-12 fiscal year, an increase of 96.17%. The export growth of yarns shows that spinners have increased the favorable conditions for competition with China and other Far Eastern countries. However, fabric manufacturers in Surat and other parts of the country are concerned that they cannot make yarn as quickly as possible because of the anti-dumping duties imposed on almost all types of synthetic filament yarns.