KAMPALA, Nov. 22 –Textile industries are pushing for the implementation of a National Textile Policy. They also want government institutions compelled to buy textiles from local companies.
Nyanza Textile Industries Limited general manager, Vinay Kumar said: “Once implemented, the policy would enable textile companies access to concessional financing for investment.”
He told MPs on education and sports committee who were on a tour of the company factory on Monday that several textile companies in Uganda are idle despite abundant cotton grown in Eastern Uganda and Acholi sub regions.
“Although the government announced the first ever five-year National Textile Policy, it has not been implemented,” Kumar said.
He noted that no new investment on board despite Uganda’s comparative advantage premised on availability of medium staple cotton.
Chairman Picfare group of companies, Kishor Jobanputra and general manager, Vinay Kumar showing finished products to the chairperson Parliament committee on education and sports, William Kwemara .
“We are asking government to establish a comprehensive Universal Primary Education and Universal Secondary Education uniform supply chain to enhance the consumption of locally-grown cotton lint so that cotton farmers get better gate prices,” Williams Okello, Nytil logistics manager said.
“Due to policy gaps arising as a result of failed policy implementation, some companies collapsed because of unfair competition with imports that are hugely subsidized,” he added.
The Nytil management noted that they used to produce various products including uniforms for different government institutions but they have resorted to importing them.
The company owned by the Picfare Group of companies, is seeking a 25 percent VAT waiver, equivalent to more than sh5b in order to sustain its operations.
“Its collapse will affect 2,500 Ugandans who derive direct livelihood from the company but also to the cotton industry generally that employs some 2.5 million Ugandans at various levels of the value chain,” the corporate affairs director Richard Mubiru said.
The committee chairperson, William Kwemara (Kyaka County) Kyegewga district said “It may require Parliament to set up a policy on school uniforms to compel all government schools in Uganda to procure quality and standard uniforms, which are locally made.