India - Textile Industry Overview

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Government restructures Technology Upgradation Fund Schemes (TUFS) for Textile Industry to boost inv

India | TQ | 1 May 2011

The Government has restructured the Technology Upgradation Fund Scheme (TUFS) – the flagship scheme of Ministry of Textiles for upgradation of technology in the textile and jute sectors. Ministry of Textiles has issued the Government Resolution on Restructured Technology Upgradation Fund Scheme for the period 28.04.2011 to 31.03.2012 (both the days inclusive) with an overall subsidy cap of Rs.1972 crore during the period. The Government Resolution lays down the financial and operational parameters and implementation mechanism for the Restructured TUFS. 2. The objective of the present Scheme is to leverage investments in technology upgradation in the Textiles and Jute Industry, with a special emphasis on balanced development across the value chain. The major objectives of the present restructured TUFS scheme are as follows:- (a) Address the issues of fragmentation and promote forward integration by providing 5% IR for spinning units with matching capacity in weaving/knitting/processing/ garmenting; (b) promoting investments in sectors with low investment like processing; (c) reducing the repayment period to 7 years with 2 years moratorium to promote financial efficiency; (d) Technology upgradation in weaving by providing higher capital subsidy for establishment of new shuttle less looms. This would help to reduce and eventually phase out secondhand looms (e)Ensuring greater participation of SSI units by increasing the limits under this category; (f)The eligibility of restructured/ rescheduled cases to be restricted to initial loan repayment schedule and ballooning of subsidy in rescheduled cases to be avoided (f) revamped scheme to be structured in such a way that the subsidy out go is not open ended and has a definite cap of Rs. 1972 crores.; (g) Greater administrative and monitoring controls to be introduced with pre-authorization of all eligible claims by the Textiles Commissioner Mumbai, before approvals and intensive monitoring by the Inter Ministerial Steering Committee chaired by Secretary Textiles. 3. For loans sanctioned during 01.04.1999 to 28.06.2010, the then existing parameters and guidelines of TUFS would continue to apply. The Government has made provision of Rs.5432 crore towards committed liabilities for the cases sanctioned during the aforesaid period for the 11th Five Year Plan. 4. The financial and opera¬tional parameters of the ...

Import of used Garments

India | TQ | 11 March 2011

The import of worn clothing/used garments is not in such quantity or value to pose any threat to the domestic textiles industry. The imports of worn clothing in the year 2009-10 was of the order of US$ 47.18 million, which is a decline of 46.63% over 2008-09. As per latest available data for the current financial year (2010-11) the import of worn clothing/used garments was US$ 22.95 million during April-June 2010. This information was given by Smt Panabaaka Lakshmi , Minister of State for Textiles in Lok Sabha today in a written reply to a question raised by Shri Jaywantrao Awale. The Minister further stated that the Government has already imposed restrictions on the import of used garments keeping in view the sanitary and phyto-sanitary issues involved by bringing such imports under the ‘Restricted list of Imports’. The policy condition viz imports licencing Note No. (1) allowing sale of worn clothing by Special Economic Zone (SEZ) units in the Domestic Tariff Area (DTA) has also been deleted vide DGFT’s Notification No. 43/2009-14 dated the 19th May, 2010, the Minister added. RM/ (Release ID ...

Handloom Weavers

India | TQ | 4 March 2011

The number of Handloom weavers and allied workers as per the Second Census of Handlooms of India (1995-96) and Third Handloom Census of India (2009-10) are:  Sr. No. Census Number of Handloom Weavers and Allied Workers      (in lakhs) 1 Second Census (1995-96) 65.50 2 Third Census (2009-10) 43.31 Factors identified for the decline of Handloom Sector, inter alia, include,  (i) competition with mechanized sector such as mill and powerloom Sectors,   (ii)  decline of handloom corporations/Apex  Cooperative Societies (iii) high cost of credit & low disbursement of credit for the handloom weavers, (iv) Choking of cooperative credit lines due to debt over-dues and (v) marketing problems etc. This information was given by the Minister of State for Textiles, Smt. Panabaaka Lakshmi in a written reply in the Lok Sabha today to a question raised by Shri A.T. Nana Patil and Shri Hansraj G. Ahir. The Minister further stated that the although, the number of handloom weavers and allied workers has declined, yet improvement in various other parameters has also been reported in  2009-10 Census over 1995-96 Census.  The details are as under :Sr. No.      Indicator  2009-10 Census  1995-96 Census  1. Man days worked per weaver per annum (days)  234  197  2. Share of full time weavers to total weavers  64%  44%  3. Share of weaver households  reporting less than a metre production  46%  68%  4. Share of Idle looms  4%  10%   For the development of Handloom Sector and welfare of Handloom weavers, five Schemes  are under implementation, which are  (i) Integrated Handlooms Development Scheme, (ii) Handloom Weavers’ Comprehensive Welfare Scheme (iii) Marketing & Export Promotion Scheme (iv) Mill Gate Price Scheme  and (v) Diversified Handloom Development Scheme, the Minister added  Further, in pursuance of the recommendations of High Level Committee, constituted under Managing Director, National Bank for Agriculture and Rural Development (NABARD) and keeping in view the observations and suggestion of Ministry of Finance (Department of Expenditure), a revised package had been submitted to Ministry of Finance, which was under scrutiny. The proposals inter-alia include: (i) Waiver of overdue interest and overdue loans of Societies (ii) Recapitalisation of the balance sheet of Primary Weavers Cooperative Societies and State level Apex Societies with adequate fund support from ...

Dayanidhi Maran Inaugurates India Carpet Expo

India | TQ | 3 March 2011

Thiru Dayanidhi Maran, Union Textiles Minister, inaugurated the 21st edition of “India Carpet Expo” here today in the presence of Tmt. Panabaaka Lakshmi, Minister of State for Textiles. After inaugurating the Expo , Thiru Maran and Tmt Panabaaka Lakshmi went around and visited several stalls. India Carpet Expo, which is organized by Carpet Export Promotion Council (CEPC), is the largest fair of Handmade woolen, silk, carpets, rugs and floor-coverings.  The Expo will remain open from 3rd o 5th March, 2011.  This will be followed by an Exhibition-Buyer Seller Meet on 6-7 March, 2011 in Jaipur.  More than 176 Exhibitors of Handmade Carpets and other floor coverings from UP, Rajasthan, J&K, Panipat, Delhi etc are displaying their latest designs of Handmade carpets and other floor coverings.  200 overseas buyers from USA, UK, Germany, Canada, France, Italy, South Africa etc. have confirmed their participation in the Expo. BACKGROUND  OF INDIA CARPET INDUSTRY:- The Indian Handmade carpet Industry is an age old and has made significant strides in the recent past and export of carpets in 2009-10 and 2010-11 are:               2009-10           -           US$ 525.87 Million             2010-11           -           US$ 503.57 Million             (April- January).  The CEPC is expecting to achieve the target of US $ 650 Million for the year 2010-11.  India is top most producer and exporter of Handmade Carpet in the world.  The industry is highly labour-intensive and provides employment to over 2.5 Million workers in the rural areas. The Indistry is highly concentrated in States like Uttar Pradesh, J&K, Rajasthan, Haryana, Punjab, H.P. etc. The Industry provides huge value addition.  Wages constitute 40% to 50% of the cost. 50% of the export earning is directly injected for poverty alleviation. Indian Carpet Industry is the only one in the world which offers customs made rugs and carpets.  The pattern, color, size are all manufactured according to the requirements of the overseas buyer. RM/JL (Release ID ...

Steps taken for Expansion of Textile Industry

India | TQ | 3 March 2011

The Government have taken a number of steps for expansion of T&C sector including technology upgradation and modernization of textile mills under the Technology Upgradation Fund Scheme, support for industry infrastructure through Scheme for Integrated Textile Parks (SITP); Integrated Scheme for Development of Powerloom Sector along with Group Workshed Scheme for the sector; Scheme for skill upgradation of textiles workers under the Integrated Skill Development Scheme and other capacity building programmes for the industry like Knitwear Technology Mission. In addition, fiscal incentives are provided for exports of T&C items under various provisions of the Foreign Trade Policy – 2009-14. This information was given by the Minister of State for Textiles, Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha today to a question raised by Shrimati Bimla Kashyap Sood. The Minister further stated that the weaving and processing sector are considered to be a weaker sector for want of adequate modernization. Government have initiated a number of steps for weaving and processing sector which include interest reimbursement, margin money subsidy and capital subsidy under TUF Scheme. The exports of readymade garments and made-ups increased by over 10% in 2008-09 compared to 2007-08 but there was a decrease of around 1% in 2009-10 compared to 2008-09. However, in the current financial year (April-Sept) provisional figure indicate that exports have gone up by around 7% compared to 2009-10. RM/JL (Release ID ...

Effect of Costly Cotton on Handloom and Industry

India | TQ | 3 March 2011

The cotton yarn is the main raw material for the weavers and rise in the price of cotton has been a matter of concern for the weavers all over the country.  However, the Govt. of Tamil Nadu has intimated that costly cotton has not affected the handloom cloth sector to a great extent. This information was given by the Minister of State for Textiles, Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha today to a question raised by Shrimati Jayanthi Natarajan.   The Minister further stated that the Government of India is implementing following schemes for overall development of the handloom sector in the country including Tamil Nadu:-  i)    Integrated Handloom Development Schemeii)    Handloom Weavers Comprehensive Welfare Schemeiii)   Marketing & Export Promotion Schemeiv)   Diversified Handloom Development Schemev)   Mill Gate Price Scheme  In addition, Comprehensive Handloom Cluster Development Scheme (CHCDS) has been introduced in 2008-09 with an objective to empower handloom weavers and build their capacity to enhance competitiveness of their products in the domestic as well as global market in a sustainable and reliant manner. The scheme covers clearly identifiable geographical locations with at least 25,000 looms in which Government of India’s financial support would be up to Rs.70 crore.   Four such Mega Handloom Clusters have been sanctioned so far at Varanasi (Uttar Pradesh), Sivasagar (Assam), Virudhunagar (Tamilnadu) and Murshidabad (West Bengal).  Further, the Govt. of India has taken the following initiatives to control the prices of cotton and cotton yarn:-  1.Capping of cotton exports for cotton season 2010-11 (October to September);2.Hank Yarn Obligation expanded from 40s counts to 80s counts w.e.f. 31.03.2010;3.Stringent checking of Hank Yarn Obligations on spinning mills;4.Withdrawal of DEPB incentive of 7.67% on cotton yarn exports w.e.f. 21.4.20105.Withdrawal of duty drawback on yarn w.e.f. 29.4.2010;6.Constitution of a Cotton Yarn Advisory Board to monitor domestic and international prices of cotton yarn; and7.Capping cotton yarn export  for financial year 2010-11. The Government of Tamil Nadu is also implementing following schemes for welfare of the handloom weavers and the development of the handloom sector, the Minister added.  i)     Free distribution of Sarees and Dhoties Schemeii)    Free supply of Uniform Schemeiii)    Free supply of Electricity to handloom & ...

India Proposes MOU on Wool Cooperation With Australia

India | TQ | 18 February 2011

The Union Minister of State for Textiles, Smt. Panabaaka Lakshmi has discussed the modalities for a Memorandum of Understanding on Wool Cooperation with Dr. Mike Kelly, Parliamentary Secretary for Agriculture, Fisheries and Forestry in Canberra, Australia yesterday. During the discussions, the Minister proposed an MOU on Wool Cooperation, which envisages establishing a world class laboratory at Mumbai in the Wool Research Association in collaboration with Australian Wool Testing Authority (AWTA), the exchange programme for Indian sheep breeders to visit Australia, grading and marketing, breed improvement for betterment of Indian wool and a proposal for setting up of wool exchange. The Minister also discussed the setting up of institutional structures for closer collaboration and expeditious formulation of an MOU on wool sector. Australia is the largest wool exporter in the world, with 200 million US Dollars of wool exports to India. This export envisages substantial increase in the spindlages of Indian wool and textile mills. Earlier during the day, Smt. Panabaaka Lakshmi visited the AWTA, the Australian Wool Exchange and a wool processing plant in Melbourne, as well as merino sheep breeding farm in Victoria. The Minister would be visiting Australian Wool Innovation in Sydney today. RM/JL (Release ID ...

Finance Minister Assures Government Commitment & Resources to Facilitate Proper Growth of Textiles I

India | TQ | 2 February 2011

Need to Monitor Retail Index Says Dayanidhi Maran Tex-Trends India -2011 , Asia’s Largest Sourcing Textiles Show Begins  The Finance Minister Shri Pranab Mukherjee today assured the textiles industry the Government’s continuous support to upgrade technology , manufacturing processes and conducive policy enviornment to facilitate its proper growth and enhance productivity. Shri Mukherjee said “The Government is sensitive to the needs of this industry. It has provided and shall continue to provide the textile industry a conducive policy environment to facilitate its growth, augment R&D efforts, and encourage innovation with a view to enhance productivity. The Government supports up-gradation of technology, manufacturing processes and the development of human resources for this industry.” The Finance Minister said this while speaking at a function after inaugurating “ Tex-Trends India 2011” , here today. Towards this end, Shri Mukherjee said that the Union Budget 2010-11 took several initiatives. It included a significant increase in funds allocated to Cotton Technology Mission and to the integrated textile parks, and extension of the interest subvention of 2 per cent until March 31, 2011 for exports covering handicrafts, carpets and handlooms segments of this industry. The textile industry is also being supported with an extensive skill development programme to train 3 million persons over a 5 year period, by leveraging the strength of existing institutions under the textile ministry, he added. Shri Mukherjee said that in the post-global financial crisis period, even as the economy gathers momentum and our exports grow, there are many sectors of the economy that need policy attention. As the time for Union Budget draws closer, he said that the expectations of actors from these different sectors of the economy tend to rise. Considering this a healthy sign for a growing economy , the Finance Minister further assured textile industry said “ as the Government prioritizes its commitments and resources in the overall interest of the economy, the textiles industry, including its rural dimension, will be given the priority that it deserves.” The Finance Minister said that the economic reforms pursued by successive Government over the last two decades have unleashed a new era of high ...

Textiles Ministry Organises Show on Fashion Accessories to Promote Indian Handicrafts

India | TQ | 15 December 2010

As a part of celebration of All India Handicrafts Week from 8th to 15th December, 2010, Office of the Development Commissioner (Handicrafts), Ministry of Textiles, Govt. of India, for the first time organized a Show on Fashion Accessories to create awareness about Indian Handicrafts Accessories and to promote Brand Image of Handicrafts in India. This Show was inaugurated by Thiru Dayanidhi Maran, Textiles Minister here today . The other dignitaries present were Tmt. Rita Menon, Secretary (Textiles), Thiru R.N. Choubey, Development Commissioner (Handicrafts). During the Fashion Show the following Handcrafted Accessories were displayed by Models in 12 segments covering various craft themes. The Crafts displayed are Chikankari, Kantha, Bandhej Tie Dye, Folk Painting, Applique & Crochet, Phulkari & Kalamkari Painting, Crewel Embroidery, Mirror Work, Zardozi etc. These products were created in different Clusters developed with the Financial Support from Office of the Development Commissioner (Handicrafts), Govt. of India. The show has brought forward the Indian Designs and the crafts and also established its actual usages. Before commencement of the Fashion Show , Thiru Maran also released a book on “Treasure of Handicrafts Clusters from India” indicating designing developed through cluster development programme. Secretary (Textiles) also released Crafts Map of Handicrafts Clusters. RM/ (Release ID ...

Production and Consumption of Cotton

India | TQ | 2 December 2010

The Government has assessed the total production and consumption of cotton in the country before allowing export of cotton. This information was given by the Minister of State for Textiles, Smt. Panabaaka Lakshmi in a written reply in the Lok Sabha today to a question raised by Shri D.B. Chandre Gowda and Shri Abdul Rahman: The Minister further stated that the Cotton Advisory Board (CAB) met on 27.8.2010 and estimated production of cotton at 325 lakh bales and consumption at 266 lakh bales. The supply for the year 2007-08, 2008-09 and 2009-10 was 369 lakh bales, 335.50 lakh bales and 373.50 lakh bales respectively. Total demand including exports for the year 2007-08, 2008-09 and 2009-10 was 326 lakh bales, 264 lakh bales and 333 lakh bales respectively. RM/JL- PQ 1 - USQ 3749 – LS(Release ID ...

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