Explain why many of our spinners export cotton yam while apparel/garment manufacturers have to import fabric.
India’s share in the world trade of cotton yarn accounts for one-fourth of the total trade. However, our trade in garments is only 4 per cent of the world’s total but in spite of these facts many of our spinners export cotton yarn while apparel/garment manufacturers have to import fabric. The reasons for this state of affairs are as mentioned below : The weaving, knitting and processing units cannot use much of the high quality yam that we produce. There are some large and modern factories but most of the production is done in fragmented small units. These units cater to the needs of loqal market. This mismatch is a major drawback for the industry. Production of good quality long staple cotton has increased but India still imports due to the following reasons : Erratic power supply. Old machinery that needs upgradation. Low output of labour. Stiff competition with the synthetic fiber industry.
