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The much awaited National Fibre Policy, aimed at restoring the competitiveness of the domestic textile industry, is set to come into being early in the next financial year, 2010-11.
The government had mulled NFP in June last year.
Union minister for textiles Dayanidhi Maran said, "The making of the National Fibre Policy is in its final stages and will be ready by March end." He spoke at a seminar today, organised by the Confederation of Indian Industry on textiles. He declined to divulge details.
The policy was to have come into existence by December 2009. Maran had earlier had said NFP would help both exporters and the domestic market.
The new policy is likely to benefit various sectors, such as cotton, cotton yarn and man-made fibres to garments, the spinning sector, exporters and domestic markets.
The need for such a policy was felt due to several industry lobbies with conflicting interests.
In the $40-billion (Rs 1.8 lakh crore) domestic market, over 60 per cent is taken by cotton textiles and the rest by man-made fibres.
Industry leaders Business Standard spoke to said various industry lobbies look after their respective interests, a hurdle in making industry competitive.
On the Technology Upgradation Fund Scheme, Maran said that for the current financial year, 2009-10, the ministry had exceeded the planned allocations and would require an additional Rs 1,500 crore (Rs 15 billion).
In the current year, Rs 3,500 crore (Rs 35 billion) had been allocated.
Tells industry to give some ideas
"The industry needs to look at the large domestic market. Textile players should not come with a begging bowl, but rather with new ideas," said Maran. He suggested exporters look beyond the US and European markets.
"These two markets have a tendency of parallel movement, as they boom and fall together," he added.He also told companies to look at the rural market.
"Malls and retail space are not the solution to increase business. However, textile firms try to compete more with international brands, which sell products at higher prices," he felt.
