Interviews
The President to lay foundation stone of Greenfield Project by NTC
06 Sep '08
5 min read
Under commercial operations, 7.65 lakh bales, valued at Rs. 921 crore were purchased in the Cotton season of 2007-08, compared to 2.71 lakh bales valued at Rs. 286 crore in the cotton season of 2006-07. 12 lakh quintal of Kapas (cotton with seed) equivalent 2.25 lakh bales valuing Rs. 249 crore was procured in Andhra Pradesh & Orissa, under MSP operations during 2007-08.
Shri Vaghela informed that the higher export of raw cotton had an impact on the cotton prices which shot up to historic highs in the current cotton season. Since October-end 2007 till July 2008, the cotton prices had been higher by around 20% to 40% compared to last year.
The opening cotton prices during the fiscal 2007-08 had been higher by around 4% to 17% as compared to previous year. This was affecting the viability of textiles mills, and on the persistent demand of the Industry the Government abolished import duty of 14.7%, and drawback benefits on raw cotton w.e.f. July 8, 2008. This has helped to stabilize the prices.
Shri Shankersinh Vaghela said that the Indian textiles industry is in a stronger position than it was in the last six decades due to sagacious guidance provided by Smt. Sonia Gandhi, Chairperson, United Progressive Alliance (UPA) and Dr. Manmohan Singh, Prime Minister.
The industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 16 percent in value terms and will reach the level of US $ 115 billion (exports US $ 55 billion; domestic market US $ 60 billion) by 2012.
Shri Shankersinh Vaghela said that the biggest achievement of the UPA Government was to turnaround the Indian Textiles from Sunset to Sunrise sector.
The catalyst for this exponential growth is a buoyant domestic economy, substantial increase in cotton production, the conducive policy environment provided by the Government, and the expiration of the Multi Fibre Arrangement (MFA) on December 31, 2004.
The rationalization of fiscal duties undertaken during the last three years has also provided a level playing field in all segments of the industry, resulting in the holistic growth of the industry.
The Minister said that within one year of the MFA regime coming to a close on December 31, 2004, Indian exports grew at a staggering rate of 22%.
The exports of textiles and clothing during 2004-05, 2005-06 and 2006-07 were US$ 14 billion, US$ 17.52 billion and US$ 18.73 billion respectively.
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Shri Vaghela informed that the higher export of raw cotton had an impact on the cotton prices which shot up to historic highs in the current cotton season. Since October-end 2007 till July 2008, the cotton prices had been higher by around 20% to 40% compared to last year.
The opening cotton prices during the fiscal 2007-08 had been higher by around 4% to 17% as compared to previous year. This was affecting the viability of textiles mills, and on the persistent demand of the Industry the Government abolished import duty of 14.7%, and drawback benefits on raw cotton w.e.f. July 8, 2008. This has helped to stabilize the prices.
Shri Shankersinh Vaghela said that the Indian textiles industry is in a stronger position than it was in the last six decades due to sagacious guidance provided by Smt. Sonia Gandhi, Chairperson, United Progressive Alliance (UPA) and Dr. Manmohan Singh, Prime Minister.
The industry which was growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate of 16 percent in value terms and will reach the level of US $ 115 billion (exports US $ 55 billion; domestic market US $ 60 billion) by 2012.
Shri Shankersinh Vaghela said that the biggest achievement of the UPA Government was to turnaround the Indian Textiles from Sunset to Sunrise sector.
The catalyst for this exponential growth is a buoyant domestic economy, substantial increase in cotton production, the conducive policy environment provided by the Government, and the expiration of the Multi Fibre Arrangement (MFA) on December 31, 2004.
The rationalization of fiscal duties undertaken during the last three years has also provided a level playing field in all segments of the industry, resulting in the holistic growth of the industry.
The Minister said that within one year of the MFA regime coming to a close on December 31, 2004, Indian exports grew at a staggering rate of 22%.
The exports of textiles and clothing during 2004-05, 2005-06 and 2006-07 were US$ 14 billion, US$ 17.52 billion and US$ 18.73 billion respectively.
Click here to view more:
Press Information Bureau Government of India
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