Lok Sabha Question No. 761 (UNSTARRED), answered on 2017-07-20
Subject: Availability of Cotton
Ministry: TEXTILES
Asked by: RAGHAV LAKHANPAL

## LOK SABHA UNSTARRED QUESTION NO. 761 TO BE ANSWERED ON 20.07.2017

## AVAILABILITY OF COTTON

## 761.   SHRI RAGHAV LAKHANPAL:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) the  changes  made  to  the  policy  of  the  Government  to  provide  cotton  to  the textile industry in the country during the last three years;
- (b) the  efforts  made  by  the  Government  to  make  more  cotton  available  to  the textile industry at reasonable price;
- (c) whether there  is  acute  shortage  of  cotton/yarn  in  the  country  and  if  so,  the details  thereof  and  the  reasons  therefor  along  with  the  steps  taken  by  the Government in this regard; and
- (d) the details of incentives/subsidies/ working capital/interest subvention that are being provided to the domestic manufacturers/exporters?

## उत्तर

## ANSWER

## वस्त्र      मंरी (श्री अज      )

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

(a)  & (b): Government reviews the cotton availability position from time to time. Adequate availability of cotton is ensured through domestic production and textile mills are able to source their requirement of cotton from the domestic market. In this regard, Government of India had directed Cotton Corporation of India Ltd. to sell its stock of cotton (cotton season 2015-16), purchased under MSP, to Spinning Mills in the  Micro  Small  Medium  Enterprise  (MSME)  category  to  contain  fluctuation  in cotton prices.

- (c): No, Madam.  There is no shortage of cotton/yarn in the country.
- (d): The details of policy initiatives/schemes/incentives/subsidies/working capital/interest subvention that are being provided to the domestic manufacturers/exporters are as under:-
- i) The Government has been implementing various policy initiatives and schemes like Technology Upgradation Fund Scheme (TUFS), Schemes for the development of the Power-loom Sector, Schemes for Technical Textiles,  Scheme  for  Integrated  Textile  Parks  (SITP),  Scheme  for Integrated  Textile  Processing  Development  (IPDS),  etc.  enable  the textile  industry,  including  the  small  industries,  to  upgrade  and  make them competitive.
- ii) The  Government  has  also  launched  a  Rs.  6000  crore  Scheme  for Production  and  Employment  Linked  Support  for  Garmenting  Units (SPELSGU) under ATUFS to incentivize production and employment generation in the garmenting Sector.  These initiatives and schemes will help  in  the  development  of  the  downstream  value  added  segments which in turn will create increased demand for yarn and thereby lead to increased production of yarn.
- iii) Government has introduced special packages for apparel and made-ups sector  in  June,  2016  and  December,  2016  respectively  which  include schemes like Amended Technology Upgradation Fund Scheme (ATUFS), Pradhan Mantri Paridhan Rojgar Protsahan Yojna (PMPRPY),  Scheme  of  Rebate  of  State  Levies  (RoSL)  on  export  of garments  etc.  Besides,  with  a  view  to  modernize  textile  industry, increase production and global competitiveness schemes  such  as Schemes  for  Technical  textiles,  Scheme  for  Integrated  Textile  Parks (SITP), Integrated Skill Development Scheme etc. are also being run by the Government.
- iv) MEIS Scheme under new Foreign Trade Policy 2015-20.
- v) Restoring Interest rate subvention for pre and post shipment credit for the textile sector,
- vi) Expanding  the  scope  of  Merchandise  Export  from  India  Scheme (MEIS) since 29.10.2015 to 110 new tariff lines and increase rates or country coverage or both for 2228 existing tariff lines.
- vii) Increased Duty Drawback rates for some textile articles.
- viii) Market  Access  Initiative  (MAI)  and  Market  Development  Assistance (MDA) Scheme.
- ix) Duty  Free  import  of  trimmings,  embellishments  and  other  specified item under Export Performance Certificate Entitlement Scheme.