Since Jan 2010, cotton prices have increased from 60 cents/lb to US$1, outstripping N.Y futures by a wide margin. Spinners who are not regular customers or don’t work with large agents can’t buy good quality cotton. SME factories in Thailand either buy cotton from well-connected factories or wait for the next year’s cotton crop, said Thaweeporn Theeratattanon, executive director, Thai Alliance Textile Co., Ltd.

Jane Namchaisiri, Asia Fiber chairman. 

The International Cotton Advisory Committee predicts 14% increase in 2010-2011 cotton output, approximating 25 million tons. As shortage will prevail until the next crop is delivered to Thailand, inventory needs to be carefully managed, said Veerachai Pinyawat, deputy managing director, The Phiphatanakit Textile Co., Ltd.

In addition to banana fiber prototype, Thailand Textile Institute has developed odor and bacteria resistant fiber by mixing ashes from coconut shells with polyester fiber. Marketing constraints hinder investment decisions while pilot plants have been delayed till next year.

Chanchai Sirikasemlert, director of technology department, THTI.

Quoting Pilan Dhammongkol, president of The National Federation of Thai Textile Industries, Chanchai Sirikasemlert, director of technology department, reiterates that sustainable growth starts with development of indigenous raw materials. Local fashion industry and textile producers yearn for diversity while home textile producers demands anti-bacterial and long-lasting functional properties.

Synthetic functional fibers are considered Eco products if they are recyclable or provide assurances of efficient waste management. Thailand has a competitive edge over Taiwan because it can produce both synthetic as well as natural fibers, albeit constrained by costs and agreed procedure for separating natural fiber. Assuming demand supply equilibrium, diversity of yarns and fabrics will surely strengthen Thailand’s competitiveness.

“Overseas buyers are interested in our banana fiber prototype but demand volume can’t be quantified. Several fibers developed by THTI have also won DEMark (Design Excellent Award from Department of Export Promotion, Ministry of Commerce). Although small scale production is feasible, commercial production involves investment risks and uncertain market demand. New product development takes time but market niche will be sustainable. Failure to shift from basic fibers means inability to compete with China,” Dr. Charnchai expounded.

S.R. Spinning’s viscose or Modal fiber yarn faces saturated domestic market and export constraints, said Ekachai Buranatrakul, assistant managing director.

Veerachai noted that ability to make use of diverse raw materials depends on specialized skill and available machinery. Phiphatanakit Textile will install modern equipment to produce functional yarns In the next 2-3 years.

In addition to anti-bacteria nylon, Asia Fiber‘s dope dyed fiber for socks eliminates dyeing and conserves energy.  

Today, only 2- 3 factories in Thailand are capable of producing bi-component fibers. If a pilot plant is set up, more research works will support future growth of Thai textiles.  To strengthen consumers’ confidence, The Office of Industrial Product Standard could develop a local standard for special fibers. A law requiring producers to specify raw material contents  on their labels is also needed.  

Thai Alliance Textile confirmed that market demand for Eco-friendly or recyclable synthetic fibers and organic fibers is rising, subject to global economic recovery.  Production bases are mainly located in low-cost India or Pakistan while buyers prefer certified suppliers.

To offset declining garment exports, local producers cooperate, share data and marketing costs, and set up joint Sales Offices in Vietnam to promote regional export of textile raw materials, yarns & fabrics, advised Jane Namchaisiri, Asia Fiber chairman.