14 August 2011
Close to $1 billion will be allocated for upgrading the production line of textile units, said director general of textile industries of Ministry of Industry, Mine and Commerce.
In addition, close to 5 trillion rials ($500 million) has been earmarked for easing cash flow of textile, leather and garment industries, Mehdi Eslampanah noted, INN.ir wrote.
Moreover, over $112 million will be allocated as compensation for the rise in the price of cotton and avert its impact on downstream industries, he added.
On the trend in cotton production, managing director of Cotton Farmers Association said China and the US, as the world's largest producers and exporters of the strategic crop, support the production and export of cotton.
The US, he noted, pays subsidies to cotton growers, since over 53 industries including defense, animal husbandry, textiles, and cellulosic products depend on this crop.
Given the country's favorable climatic conditions for cotton growing and domestic demand for this precious crop, he urged greater support for the sector.
The official continued that the textile units should raise their production to meet domestic demand.
Renovation
Therefore, renovation of textile factories is of high importance, he pointed out.
Eslampanah described exports of textile products as a major task of Ministry of Industry, Mine and Commerce.
Iran leads the Middle East in the textile industry. The government also plans to renovate leather and footwear industries, he added.
He explained that carpet factories operate with 95 percent capacity while polyester plants only make use of 70 percent of their capacity.
Close to 129 textile factories operate across the country, he noted.
The industrialist listed building and expanding brands in textile industries, phasing out rundown machineries, giving incentives for increasing foreign investment, and supporting textile villages, production consortiums and export-oriented units as the goals and policies adopted to remove the problems facing the textile industries.
Privatization
About 9,500 industrial units are active in the Iranian textile industry, more than 75 percent of which are private.
A very small number of the state-run units of the country are mainly responsible for the setbacks of the sector, however, private Iranian companies are flourishing.
Deputy Minister of Industries and Mines Afshin Roghani said earlier that governmental textile units whose managers lack industrial outlook create a climate in which the textile industry is not viewed positively and people assume that textile industry faces various disorders.
"In fact, it must be asserted that textile industry has no particular problems and the conditions of private textile units are improving," said Roghani.
However, the fact that machineries in textile factories are outdated is an issue on which all officials agree, he said, adding outdated machinery should be renovated at the earliest so that the local textile industry could compete with other countries.
At present 9,500 textile units have permits and are operational nationwide. Of this figure, about 75 percent pertains to the private sector and the remainder is state-run. About 10 state-run textile factories are among units that have the most problems.
Close to $1 billion will be allocated for upgrading the production line of textile units, said director general of textile industries of Ministry of Industry, Mine and Commerce.
In addition, close to 5 trillion rials ($500 million) has been earmarked for easing cash flow of textile, leather and garment industries, Mehdi Eslampanah noted, INN.ir wrote.
Moreover, over $112 million will be allocated as compensation for the rise in the price of cotton and avert its impact on downstream industries, he added.
On the trend in cotton production, managing director of Cotton Farmers Association said China and the US, as the world's largest producers and exporters of the strategic crop, support the production and export of cotton.
The US, he noted, pays subsidies to cotton growers, since over 53 industries including defense, animal husbandry, textiles, and cellulosic products depend on this crop.
Given the country's favorable climatic conditions for cotton growing and domestic demand for this precious crop, he urged greater support for the sector.
The official continued that the textile units should raise their production to meet domestic demand.
Renovation
Therefore, renovation of textile factories is of high importance, he pointed out.
Eslampanah described exports of textile products as a major task of Ministry of Industry, Mine and Commerce.
Iran leads the Middle East in the textile industry. The government also plans to renovate leather and footwear industries, he added.
He explained that carpet factories operate with 95 percent capacity while polyester plants only make use of 70 percent of their capacity.
Close to 129 textile factories operate across the country, he noted.
The industrialist listed building and expanding brands in textile industries, phasing out rundown machineries, giving incentives for increasing foreign investment, and supporting textile villages, production consortiums and export-oriented units as the goals and policies adopted to remove the problems facing the textile industries.
Privatization
About 9,500 industrial units are active in the Iranian textile industry, more than 75 percent of which are private.
A very small number of the state-run units of the country are mainly responsible for the setbacks of the sector, however, private Iranian companies are flourishing.
Deputy Minister of Industries and Mines Afshin Roghani said earlier that governmental textile units whose managers lack industrial outlook create a climate in which the textile industry is not viewed positively and people assume that textile industry faces various disorders.
"In fact, it must be asserted that textile industry has no particular problems and the conditions of private textile units are improving," said Roghani.
However, the fact that machineries in textile factories are outdated is an issue on which all officials agree, he said, adding outdated machinery should be renovated at the earliest so that the local textile industry could compete with other countries.
At present 9,500 textile units have permits and are operational nationwide. Of this figure, about 75 percent pertains to the private sector and the remainder is state-run. About 10 state-run textile factories are among units that have the most problems.
© Iran Daily 2011
