Lok Sabha Question No. 958 (UNSTARRED), answered on 2020-09-18
Subject: Effects of COVID-19 Pandemic on Textile Sector
Ministry: TEXTILES
Asked by: Sanjay Sadashivrao Mandlik, Parvatagouda Chandanagouda Gaddigoudar, Chandra Sekhar Sahu, Sudheer Gupta, Pritam Gopinath Munde, Bidyut Baran Mahato, Shrirang Appa Barne, Pocha Brahmananda Reddy

## LOK SABHA UNSTARRED QUESTION NO. 958 TO BE ANSWERED ON 18.09.2020

## EFFECTS OF COVID-19 PANDEMIC ON TEXTILE SECTOR

## 958. SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI BIDYUT BARAN MAHATO:

SHRI POCHA BRAHMANANDA REDDY:

SHRI SUDHEER GUPTA:

DR.PRITAM GOPINATHRAO MUNDE:

SHRI P.C. GADDIGOUDAR:

SHRI CHANDRA SEKHAR SAHU:

SHRI SHRIRANG APPA BARNE:

## Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

- (a)  whether  the  textile  sector  and  persons  engaged  in  this  sector  have  been  badly  affected  by COVID-19 pandemic, if so, whether the Government has made any assessment with regard to the losses incurred by this sector and the weavers alongwith the outcome thereof and if not, the reasons therefor;
- (b)  whether  the  Government  has  proposed/planning  to  propose  any  economic  package  for  the revival of textile industries in the country, if so, the details thereof and the time by which it is likely to  be  announced alongwith the other steps taken/being taken by the Government to boost Indian textile sector;
- (c)  whether  the  Government  has  announced  a  revival  package  or  scheme  under  'Atmanirbhar Bharat Programme' for the weavers in the country and if so, the details thereof;
- (d)  whether  large  number of  textile  manufacturing  units  -  handloom  and  powerloom  have  fallen into debt trap, falling exports, cancellation of pre-booked orders, interest burden from banks/lenders, piling stock, etc. are on the verge of closure and are resorting to retrenchment due to COVID-19  lockdown  in  the  country  and  if  so,  the  details  thereof,  State/UT-wise,  particularly Karnataka; and
- (e) whether the Government has proposed/unveiled any assistance/SoPs/stimulus package to assist the sick/ closed textile mills in the country, if so, the details thereof and if not, the reasons therefor?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a): The  global  pandemic  of  Covid-19  has  affected  the  existing  modus  operandi  of  various textile sectors by posting restriction of social gathering, migration of laborers as well as affecting all the stakeholders right from farmers to traders/exporters in the value chain of textile sector and at the same time it has opened new window of opportunities which were previously less explored. The government has conducted a study viz. 'Impact of Covid-19 pandemic on Indian silk industry' to ascertain the crisis caused to the sector. It has been observed that there was a production decline and monetary loss at every stage of the value chain. The industry has faced various problems like loss in production, crash in cocoon and raw silk prices, transportation problem, non-availability of skilled workers, problems in selling raw silk and silk products, working capital and cash flow problems,

non-availability of raw materials, reduction in demand for silk fabric, cancellation of export/import orders besides export and import restrictions. Since, textile sector being highly unorganized sector therefore, the government has not made any formal assessment with regard to the losses incurred by the sector.

(b) to (d): To withstand  in  COVID  19  pandemic,  the  Government  of  India  has  announced  a special  economic  package  viz . Aatma  Nirbhar  Bharat  Abhiyaan  for  boosting  economy  of  the country and making India self-reliant. Relief and credit support measures have been announced for various sectors including MSMEs. The weavers & artisans/karigars can avail benefits of these relief and  credit  support  measures  to  revive  their  businesses  which  have  suffered  due  to  lock  down necessitated  by  Covid-19  pandemic.  Taking  a  step  towards  realizing  'Atmanirbhar  Bharat', Handloom Export Promotion Council has endeavoured to virtually connect the Handloom Weavers and exporters from different corners of the country with the International Market.

With  more  than  200  participants  from  different  regions  of  the  country  showcasing  their products with unique designs and skills, THE INDIAN TEXTILE SOURCING FAIR was organised on 7, 10 and 11th August. The show has already attracted considerable attention of the International Buyers.  In  order  to  support  the  handloom  and  handicraft  sectors  and  to  enable  wider  market  for handloom  weavers/artisans/producers,  steps  have  been  taken  to  on-board  weavers/artisans  on Government  e-Market  place  (GeM)  to  enable  them  to  sell  their  products  directly  to  various Government departments and organizations.

A social media campaign #Vocal 4 handmade was launched on the 6 th National Handloom Day by the  Government,  in  partnership  with  all  stakeholders,  to  promote  the  handloom  legacy  of India and to ensure people's support for the weaving community.

The  Chief  Ministers  of  all  States  and  UTs  have  been  requested  to  instruct  their  State Handloom  Corporations/Co-operatives/Agencies  to make  purchases  of the finished inventory available  with  the  handloom  weavers/artisans  so  as  to  put  some  ready  cash  in  the  hands  of  the weavers to enable them meet their household needs.

To deal with the pandemic crisis, the Government endeavours to provide online marketing opportunities to our weavers and handloom producers. Chaupals/e-Chaupals have been organised in weavers  concentrated  areas  by  the  Weavers'  Service  Centres  (WSCs)  across  the  country  to  create awareness amongst the handloom weavers about the schemes of Government of India and to facilitate them.

Further,  to  promote  e-marketing  of  handloom  products,  a  policy  frame  work  has  been designed  under  which  any  willing  e-commerce  platform  with  good  track  record  can  participate  in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products.

(e): Government  is  implementing  various  policy  initiatives  and  schemes  for  supporting  the development of textile industry. These schemes and initiatives which promote technology upgradation, creation  of  infrastructure,  skill  development  and  sectoral  development  in  the  textile  sector,  create  a conducive environment and provide enabling conditions for textile manufacturing in the country. Thus, government  of  India  only  facilitates  the  textile  industry  for  development  and  modernization  by providing  subsidy  on  investments  made  under  various  Schemes.  Funds  are  released  to  achieve  the desired objectives under various schemes on year to year basis. The textile agencies/organisations in the  States  involved  in  textile  activities  are  the  beneficiary  agencies  of  above  schemes.    Proposals  of eligible beneficiary agencies duly recommended by the State Directorate of textiles are considered for financial assistance as per the guidelines of the schemes.