Lok Sabha Question No. 365 (UNSTARRED), answered on 2016-11-17
Subject: Production of Cotton Yarn
Ministry: TEXTILES
Asked by: BHEEMRAO BASWANTHRAO PATIL

## LOK SABHA UNSTARRED QUESTION NO.365 TO BE ANSWERED ON 17.11.2016

## PRODUCTION OF COTTON YARN

## 365.   SHRI BHEEMRAO B. PATIL:

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

- (a) the details of the total quantity and value of cotton yarns produced during each of the last three years;
- (b) whether the exports of cotton yarns have declined this year in comparison to last year and if so, the reasons therefor;
- (c) whether  the  fall  in  demand  for  cotton  yarn  in  the  domestic  and  export markets have reduced the capacity utilization of textile mills, if so, the details thereof;
- (d) the  steps  taken  by  the  Government  to  address  the  afore-mentioned problem  and  to  boost  the  competitiveness  of  Indian  cotton  yarn  in  the international market; and
- (e) whether  the  Government  plans  to  modify  the  Merchandise  Export Incentivisation  Scheme  to  encourage  exports  to  other  countries  and  if  so,  the details thereof?

## ANSWER

## ( )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

- (a): Production  of  cotton  yarns  (million  kg)  during  last  three years is as under:

| Year    | million kg   |
|---------|--------------|
| 2013-14 | 3,928        |
| 2014-15 | 4,055        |
| 2015-16 | 4,138        |

(b): Yes,  exports  of  cotton  yarn  have  declined  this  year  as compared  to  last  year  due  to  decrease  in  imports  by  China (India's top export market for cotton yarn).  Details of export of cotton yarn during 2014-15, 2015-16 and 2016-17(April-August) are given below:-

| (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   | (Quantity in MN KG ,Value in MN US$)   |
|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
| ITEMS                                  | 2014-2015                              | 2014-2015                              | 2015-2016                              | 2015-2016                              | 2015-16 (Apr-Aug)                      | 2015-16 (Apr-Aug)                      | 2016-17 (Apr-Aug)                      | 2016-17 (Apr-Aug)                      |
|                                        | Qty                                    | Value                                  | Qty                                    | Value                                  | Qty                                    | Value                                  | Qty                                    | Value                                  |
| Cotton Yarn                            | 1,256                                  | 3,961                                  | 1,327                                  | 3,622                                  | 545                                    | 1571                                   | 438                                    | 1229                                   |

(c): No, capacity utilization of textile mills has not reduced.

(d): Government has announced various export promotion schemes such as Duty Drawback  Scheme, Market Access Initiative  (MAI),  and  Market  Development  Assistance  (MDA)  to boost competitiveness of Indian cotton yarn in the international market.

(e): The Government modifies the MEIS as per prevailing export circumstances to ensure the competitiveness of Indian exports in global markets.

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