Interviews
Textiles Industry to achieve 16% growth rate by 2012
13 Oct '08
5 min read
The Minister said that the cotton is the main stay of our textiles industry. With the launching of Technology Mission on Cotton in 2000 and introduction Bt Cotton seed in 2002, and due to the focused support provided by the Government in recent past, the cotton situation has radically improved. Our production has reach a level of 31.15 million bales in the cottons season 2007-08, and the quality of Indian cotton has improved significantly.
Our yield has reached over 550 kg. per hectare. We are the second largest producer, exporter and consumer of cotton. The competitiveness of our cotton is also reflected in the share of cotton in fibre consumption, which is 60% of total fibre consumption. The share of cotton in the textiles and clothing exports is more than 75%, said the Minister.
Shri Vaghela said that the Government is operating the Minimum Support Price, MSP, Scheme through the Cotton Corporation of India Ltd. , CCI, to ensure a minimum return to the farmer. To stabilize the long term cotton production in the country and to help the farmers, while balancing the interests of textiles industry, the MSP for cotton season of 2008-09 has been substantial raised, said the minister.
The MSP of medium staple cotton of length group 24.5 mm to 25.5 mm, has been raised by 39% to Rs. 2,500 per quintal, compared Rs. 1,750 to 1,800 per quintal in 2007-08. The MSP for long staple variety of length group 29.5 mm to 30.5 mm has been raised to Rs. 3,000 per quintal in the cotton season of 2008-09 from Rs. 2,250 per quintal in the cotton season of 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.
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Our yield has reached over 550 kg. per hectare. We are the second largest producer, exporter and consumer of cotton. The competitiveness of our cotton is also reflected in the share of cotton in fibre consumption, which is 60% of total fibre consumption. The share of cotton in the textiles and clothing exports is more than 75%, said the Minister.
Shri Vaghela said that the Government is operating the Minimum Support Price, MSP, Scheme through the Cotton Corporation of India Ltd. , CCI, to ensure a minimum return to the farmer. To stabilize the long term cotton production in the country and to help the farmers, while balancing the interests of textiles industry, the MSP for cotton season of 2008-09 has been substantial raised, said the minister.
The MSP of medium staple cotton of length group 24.5 mm to 25.5 mm, has been raised by 39% to Rs. 2,500 per quintal, compared Rs. 1,750 to 1,800 per quintal in 2007-08. The MSP for long staple variety of length group 29.5 mm to 30.5 mm has been raised to Rs. 3,000 per quintal in the cotton season of 2008-09 from Rs. 2,250 per quintal in the cotton season of 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.
Click here to view more:
Press Information Bureau Government of India
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