Lok Sabha Question No. 177 (STARRED), answered on 2021-07-30
Subject: Slowdown of Textile Sector
Ministry: TEXTILES
Asked by: D.K. Suresh, Sumalatha Ambareesh

## LOK SABHA STARRED QUESTION NO. *177 TO BE ANSWERED ON 30.07.2021

## SLOWDOWN OF TEXTILE SECTOR

- *177.  SHRI D.K.SURESH: SHRIMATI SUMALATHA AMBAREESH:

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

- (a) the extent to which slowdown in India and other parts of the world has impacted the textile sector in the country;
- (b) whether there is a drastic fall in textiles export to China from the country during the last three years and if so, the details thereof;
- (c) whether the Government has taken any measures to protect cotton farmers in the country;
- (d) whether the Ministry has any proposal to export textile products to Indonesia, Vietnam, Bangladesh and Latin American countries in view of fall in the textile export to China;
- (e) if so, the details thereof; and
- (f) if not, the reasons therefor?

उत्तर

ANSWER

## वस्त्र मंत्री ( श्री पीयूष गोयऱ )

MINISTER OF TEXTILES (SHRI PIYUSH GOYAL)

- (a) to (f):A statement is laid on the Table of the House.

## Statement in reply to Lok Sabha Starred Question No. *177 for answer on 30.07.2021 by SHRI D.K.SURESH:  SHRIMATI  SUMALATHA  AMBAREESH regarding  'Slowdown  of  Textile Sector'.

(a): The global pandemic of Covid-19 has affected adversely the textile sector such as restriction on social gathering, migration of laborers, disruption of supply chain, thus affecting all the stakeholders from farmers to traders/exporters in the value chain.  However, the situation improved with time and production and exports looked up.  At the same time, covid pandemic also opened new window of opportunities. A new industry  with  production  valued  at  approx.  Rs.7000  Crore  has  been  developed  wherein  over  1100 indigenous manufactures all over the country are now producing a peak of 4.5 lakh units of PPE Body Coveralls  per  day.  India  has  become  Atma  Nirbhar  -self  reliant  and  also  the  second  largest  PPE manufacturer in the world.

(b): Details of textiles exports to China from the country during last three years are given as under:

(Figure in USD million)

| #     |   2018-19 |   2019-20 |   2020-21 |
|-------|-----------|-----------|-----------|
| China |   2194.89 |   1138.73 |   1567.94 |

(c): The Ministry of Agriculture & Farmers Welfare, Government of India had fixed Minimum Support Prices  for  medium  staple  cotton  at  Rs.  5515  per  quintal  and  long  staple  cotton  at  Rs.  5825  per  quintal, respectively for the current cotton season 2020-21 by raising Rs. 260 per quintal in case of Medium Staple Cotton and Rs. 275 per quintal in case of Long Staple Cotton. The Cotton Corporation of India Ltd., (CCI) has been designated as the central nodal agency for undertaking price support operations for cotton.

During  cotton  season  2020-21  (up  to  23.07.2021),  CCI  has  procured  seed  cotton  equivalent  to  around 91.893  lakh  bales  under  MSP  Operations.  Thus,  cotton  farmers  in  the  country  are  assured  of  better marketing of their produce due to presence of Public Sector entities like CCI Ltd.

For  the  forthcoming  cotton  season  2021-22  commencing  from  01.10.2021,  Ministry  of  Agriculture  & Farmers Welfare, Government of India has fixed Minimum Support Prices for medium staple cottonat Rs. 5726 per quintal and long staple cotton at Rs. 6025 per quintal, respectively by raising Rs. 211 per quintal in case of Medium Staple Cotton and Rs. 200 per quintal in case of Long Staple Cotton.

(d) to (f): To  boost  exports  of  textile  products,  government  provides  policy  support  including financial  incentive  to  textile  units  to  make  Indian  products  cost  competitive  in  the  overseas  market.  In order  to  boost  exports  from  India,  Government  provides  assistance  such  as  duty  exemption,  duty remission, duty drawback, duty free import of capital goods under Export Promotion Capital Goods ( EPCG)  scheme,  support  for  market  access  under  (MAI)  Scheme,  financial  support  under Technology Upgradation Scheme, Skill development under SMARTH, infrastructure development under SITP  etc.  Further,  Focus  Product  Incentive  scheme  and  Mega  Integrated  Textiles  Region  and  Apparel Parks scheme are also under formulation to support textiles industry.

Government has also given its approval for continuation of Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments and Made-ups till 31st March 2024. The other textiles products which are not  covered under the RoSCTL shall be eligible to avail the benefits, if any, under Remission of Duties and Taxes on Exported Products (RoDTEP) along with other products. The remission of  duty  and  tax  under  RoSCTL  and  RoDTEP  scheme  will  make  products  cost  competitive  in  the international markets.

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