The textile machinery industry facing a 15-20-per cent slowdown in offtake may have to cope with this situation for another six to eight months, according to Chairman of India-International Textile Machinery Exhibition Society Sanjay Jayavarthanavelu.

Speaking to reporters here at the venue of the machinery exhibition, scheduled for November 15 to 22, he said “Cheaper imports, including second hand machinery are part of the problem. Another problem is a much bigger cotton crop. Consumers too are in a wait-and-watch mood and this affects textile manufacturers.”

Till this year, the industry had a steady annual growth of 12 to 18 per cent, in pace with the textiles sector’s growth.

In the past few years, import of machinery was allowed under the Textile Upgradation Fund with an import of duty of only 5 per cent and the Government was not in a position to determine whether the machinery was new or used, said C. V. Radhakrishnan, Executive Director of the Exhibition Society. Obsolete machinery would tell on the quality of fabrics and garments.

“The textile machinery industry is worth around Rs. 10,000 crore, including Rs. 7,000 crore of imported equipment. The cost of machinery is critical in overall texitles production cost to compete globally,” Mr. Radhakrishnan said.

Union Textiles Minister Shankarsinh Vaghela will inaugurate the exhibition on November 15.

Source: The Hindu