Lok Sabha Question No. 1622 (UNSTARRED), answered on 2017-12-28
Subject: Tough Situation in Textile Sector
Ministry: TEXTILES
Asked by: R.K. BHARATHI MOHAN

## TOUGH SITUATION IN TEXTILE SECTOR

## 1622.   SHRI BHARATHI MOHAN R.K.:

## Will the Minister of TEXTILES

be pleased to state:

(a) whether the main reason for the tough situation in textile sector is the non availability of adequate cotton bales and their higher production cost;

(b) if so, the details thereof and steps taken by the Government to solve this issue;

(c) whether only a small number of textile companies could afford to withstand the pressures of various issues faced by the textile sector in the country;

(d) if so, the details thereof and the remedial measures taken by the Government to support and develop sick companies in various textile clusters in the country, particularly in Tamil Nadu; and

(e) the total amount allocated by the Union Government to Tamil Nadu for various schemes during each of the last three years and the current year, cluster-wise?

## उत्तर

## ( )

## ANSWER वस्त्र मंरी श्री अज

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a)&(b): The assessment made by Cotton Advisory Board on cotton production, import, export  and  overall  supply  and  demand  position  for  the  previous  cotton  season  2016-17 (October - September) and current cotton season 2017-18 (October-September) is as under:-

(in lakh bales of 170 Kg each)

| Particulars             | 2016-17 (P) *   | 2017-18 (P) *   |
|-------------------------|-----------------|-----------------|
| SUPPLY                  |                 |                 |
| Opening Stock           | 36.44           | 47.81           |
| Crop                    | 345.00          | 377.00          |
| Import                  | 30.94           | 17.00           |
| TOTAL SUPPLY            | 412.38          | 441.81          |
| DEMAND                  |                 |                 |
| Mill Consumption        | 262.66          | 288.00          |
| S.S.I Consumption       | 26.20           | 27.00           |
| Non Textile Consumption | 17.50           | 19.00           |
| Export                  | 58.21           | 67.00           |
| TOTAL DEMAND            | 364.57          | 401.00          |
| Closing Stock           | 47.81           | 40.81           |

P - Provisional

It  could  be  seen  from  the  above  that  sufficient  cotton  is  available  to  meet  the requirement  of  domestic  textile  industry.  Regarding  higher  production  cost  in  the  textile industry,  the  information  on  cotton  prices  shows  that  in  comparison  to  the  previous  year, average prices have decreased by 2 to 4.8 percent for the various cotton varieties.

(c)&(d): Government  supports  the  industry  to  withstand  the  competition  by  way  of various new Schemes viz., Amended Technology Upgradation Fund, Technology Mission on Technical Textiles , Scheme  for   Integrated  Textile   Park,  Scheme for Capacity Building in Textile  Sector,  Scheme  for  Integrated  Textile  Processing  Development,  PowerTex  IndiaComprehensive Scheme for Powerloom Sector Development, Special package for  Garment and  Made-ups,  Enhancing  scope  of  Section  80JJAA  of  Income  Tax  Act,  Rebate  of  State Levies  Scheme,  various  export  promotion  schemes  like  Market  Access  Initiative  Scheme, Merchandise Exports from India Scheme (MEIS) which enable them to become competitive by way of technology upgradation, market access etc.

(e): There is no State-wise allocation of funds under the schemes.  However, the details of amount  released  by  the  Union  Government  to  Tamil  Nadu  under  various  textile  sector schemes during the last three years and current year is enclosed at annexure.

## Funds Released to Tamil Nadu State

## Annexure

(Rs. in crore)

| Sl.No.   | Schemes                                                                                                          | 2014-15   | 2015-16   | 2016-17   | 2017-18   |
|----------|------------------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|-----------|
| 1        | Handloom Sector                                                                                                  |           |           |           |           |
| i)       | National Handloom Development Programme                                                                          | 7.33      | 47.33     | 27.66     | 15.40     |
| ii)      | Handloom Weavers' Comprehensive Welfare Scheme                                                                   |           | 1.94      | 1.94      | 0.52      |
| iii)     | Comprehensive Handloom Cluster Development Scheme                                                                | 2.32      | 7.43      | 7.66      | 4.74      |
| 2        | Centrally Sponsored Catalytic Development Programme (CDP) and Integrated Scheme for Development of Silk Industry | 14.08     | 4.91      | 9.49      | 5.27      |
| 3        | Technology Upgradation Fund Scheme                                                                               | 278.67    | 164.90    | 203.33    | 12.21     |
| 4        | Scheme for Integrated Textile Park                                                                               | 2.00      | -         | 2.50      | -         |
| 5        | Powerloom Sector                                                                                                 |           |           |           |           |
| i)       | In Situ Upgradation for Plain Powerloom                                                                          | 7.32      | 40.525    | 47.988    | 28.825    |
| ii)      | Group Workshed Scheme                                                                                            | -         | 0.21      | -         | -         |
| iii)     | Yarn Bank Scheme                                                                                                 | 0.70      | 2.32      | 4.73      | 1.00      |
| iv)      | Common Facility Centre Scheme                                                                                    | -         | -         | 0.36      | -         |
| v)       | Buyer Seller Meet                                                                                                | 0.41      | 0.30      | 0.48      | 0.25      |
| vi)      | Seminar/ Workshop                                                                                                | 0.05      | 0.02      | 0.065     | 0.069     |
| vii)     | Exposure Visit                                                                                                   | 0.045     | 0.03      | 0.078     | 0.076     |
| viii)    | GIS                                                                                                              | 0.89      | 0.87      | -         | -         |
| 6        | Technology Mission on Technical Textiles                                                                         | 5.612     | 5.46      | -         | -         |
| 7        | Integrated Skill Development Scheme (ISDS)                                                                       | -         | 4.22      | 4.12      | -         |
|          | Total                                                                                                            | 319.427   | 280.465   | 310.401   | 68.36     |

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