chapter viii wool & wollen textiles industry - Ministry of Textiles

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chapter viii wool & wollen textiles industry - Ministry of Textiles

annual report 2011-12

Annual Report

(2011-12)

Ministry of Textiles

Government of India

i


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ministry of textiles


annual report 2011-12

CONTENTS

Sl.No. Chapter

Page

I Highlights 1

Ii Functions and Organizational Set-Up 23

Iii The Organized Textiles Mill Industry 33

Iv Exports 49

V Cotton 57

Vi The Jute and Jute Textiles Industry 63

Vii Sericulture & Silk Industry 85

Viii Wool & Wollen Textiles Industry 99

Ix Decentralised Powerloom Sector 105

X Handlooms 113

Xi Handicrafts 139

Xii Central Public Sector Undertakings 165

Xiii Textiles Research Associations 191

Xiv Citizens’/Client’s Charter 219

Xv Welfare of Scheduled Castes, Scheduled Tribes and Women 229

Xvi Textiles in North Eastern Region 233

XVII Human Resource Development 245

XviIi Gender Justice 255

XIX Information and Communication Technology in Textiles 259

Xx Vigilance Activities 263

XxI Observations of the Comptroller and Auditor General of India 267

XxiI Persons with Disabilities 271

XXIII Results Framework Document (RFD) (2011-2012) 275

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ministry of textiles


annual report 2011-12

CHAPTER I

HIGHLIGHTS

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ministry of textiles


annual report 2011-12

CHAPTER I

HIGHLIGHTS

The Union Minister for Commerce & Industry and Textiles, Shri Anand Sharma releasing conference

papers at the 1st International Conference on Technical Textiles – TECHNOTEX 2011, in Mumbai on

August 25, 2011. The Chief Minister Maharashtra, Shri Prithviraj Chavan and the Secretary, Ministry

of Textiles, Ms. Rita Menon are also seen.

The Indian Textiles Industry has

an overwhelming presence in the

economic life of the country. Apart

from providing one of the basic necessities

of life, the textiles industry also plays a

pivotal role through its contribution to

industrial output, employment generation,

and the export earnings of the country.

Currently, it contributes about 14% to

industrial production, 4% to the GDP, and

17% to the country’s export earnings.

It provides direct employment to over

35 million people, which includes a

substantial number of SC/ST, and women.

The Textiles sector is the second largest

provider of employment after agriculture.

Thus, the growth and all round development

of this industry has a direct bearing on the

improvement of the economy of the nation.

The Indian textiles industry is extremely

varied, with the hand-spun and handwoven

sector at one end of the spectrum, and

the capital intensive, sophisticated mill

sector at the other. The decentralized

powerlooms / hosiery and knitting sector

form the largest section of the Textiles

Sector. The close linkage of the Industry

to agriculture and the ancient culture, and

traditions of the country make the Indian

textiles sector unique in comparison with

the textiles industry of other countries.

This also provides the industry with the

capacity to produce a variety of products

suitable to the different market segments,

both within and outside the country.

The major sub-sectors that comprise

the textiles sector include the organized

Cotton/Man-Made Fibre Textiles Mill

Industry, the Man-Made Fibre / Filament

Yarn Industry, the Wool and Woollen

Textiles Industry, the Sericulture and Silk

Textiles Industry, Handlooms, Handicrafts,

the Jute and Jute Textiles Industry, and

Textiles Exports.

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ministry of textiles

Implementation of Plan Schemes-

Physical and Financial Performance.

The Ministry of Textiles has taken various

policy initiatives in the last few years to

improve the competitiveness of the Indian

Textile industry. Various schemes such as

Technology Upgradation Fund Scheme

(TUFS), Scheme for Integrated Textile

Parks, Development of Mega Cluster,

Integrated Skill Development Scheme,

Technology Mission of Technical Textiles

etc. have been launched with the objective

of accelerating growth in exports and

investment in the textile sector. The major

indicators of textile sector performance

during 2011 – 12 are the following:

The year witnessed a significant slowdown

in textiles production due to a combination

of factors such as slowdown in demand,

high raw material prices, piling up of

stocks etc. During April – November, 2011

man-made fibre production and filament

yarn production recorded a decrease of

about 2% and 7% respectively. Cotton

yarn production also decreased by 13%

during the period. However blended and

100% non-cotton yarn production has

increased by 5% during the year April-

Nov. 2011. Cloth production by mill sector

increased by 2% during the period. During

April- Nov., 2011, production by handloom

increased by 3%, powerloom and hosiery

sectors decreased 4%, 16% respectively.

On export promotion, the Ministry of

Commerce & Industry has notified that

the export of cotton waste including yarn

waste & garneted stock (ITC code 5202)

will continue to be free with effect from 1 st

Oct., 2011 and the registration of export

contracts with DGFT is not required. The

Ministry has also embarked on a Plan

Scheme namely the Common Compliance

Code to prepare and orient the Indian

Garment & Apparel Industry towards more

socially and environmentally compliant

Industrial environment of globally

acceptable standard. The first installment

/grant-in-aid for the scheme amounting to

Rs 3.5 cr. was released to the AEPC on

28.10.11.

During November 2011, provisional

export of handmade carpets & other

floor coverings has shown increase of

62.76 % in rupee terms and 44.19 % in

US $ terms as compared to November

2010. The Export of other handicrafts

items increased by 26.77 % in rupee

terms and by 12.31 % in US $ terms

during November, 2011 as compared to

November 2010. The total provisional

export of handicrafts including hand

knotted carpet during November, 2011

is estimated at Rs. 674.74 crores (US $

132.85 millions), whereas the export in

November 2010 was of Rs 480.66 crores

(US $ 106.82 millions), thus showing an

increase of 24.36 % in rupee terms and

40.37 % in US $ terms.

Plan Allocations (2010-11 and 2011-12)

The total approved outlay for 2010-11

and 2011-12 were Rs.4725.00 crore

and Rs.5000.00 crore respectively. The

total Plan outlay has been allocated for

implementation of various schemes under

Village & Small Enterprises (VSE) sector

and Industry Sector.

Village & Small Enterprises (VSE)

Sector

Village & Small Enterprises (VSE)

sector includes Handlooms, Handicrafts,

Sericulture, Powerlooms, Wool &

Woolens and Development of Mega

Cluster. The total plan allocation under

this sector during 2010-11 and 2011-12

were Rs.1210.00 crore and Rs.1165.00

crore against which expenditure was

Rs.917.21 crore (75.80% over BE) and

Rs.541.56 crore (46.49% over BE) (as

on 30.12.2011) respectively.

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annual report 2011-12

Industry Sector

Under industry sector 16 schemes

have been sanctioned. The total plan

allocation under this sector during 2010-

11 and 2011-12 were Rs.3284.50 crore

and Rs.3835.00 crore against which

expenditure was Rs.3265.56 crore

(99.42% over BE) and Rs.2354.91 crore

(61.41% over BE) (as on 30.12.2011)

respectively. The major allocation

during 2010-11 and 2011-12 was under

Technology Upgradation Fund Scheme

(TUFS); the allocation being Rs.2267.50

crore and Rs.3100.00 crore respectively.

The allocation for 2010-11 and 2011-

12 under Scheme for Integrated

Textile Parks (SITP), National Institute

of Fashion Technology (NIFT), Jute

Technology Mission were Rs.350.00

crore & Rs.347.00 crore, Rs.210.00 crore

& Rs.128.00 crore and Rs.72.00 crore &

Rs.54.00 crore respectively.

ORGANISED COTTON/ MAN-MADE

FIBRE TEXTILE INDUSTRY

The Cotton / Man-made fibre textile

industry is the largest organized industry

in the country in terms of employment

(nearly 1 million workers) and number of

units. Besides, there are a large number

of subsidiary industries dependent on

this sector, such as those manufacturing

machinery, accessories, stores, ancillaries,

dyes & chemicals. As on 30.11.2011,

there were 1946 cotton/man-made fibre

textile mills (non-SSI) in the country with an

installed capacity of 43.13 million spindles

5,20,000 rotors and 52,000 looms.

Textile production covering man-made

fibre, man-made filament yarn and

cotton yarn is showing a decreasing

trend. Blended and 100% non cotton

yarn production recorded an increase

of 5.2% during 2011-12 (April – October

2011). The production of spun yarn

during April-Oct. (2011-12) has shown

a decrease of 8.1%. The production of

cotton yarn during 2011-12 (April-Oct.

2011) recorded a decrease of 12.7%

(Provisional).

Cloth production by mill sector showed

marginal increase of 4.6% during April-Oct.

(2011-12) (provisional). During the same

period cloth production by power loom

and hosiery sector showed a decrease of

4.4% and 17.8% respectively. However

the cloth production in handloom sector

showed an increase of 3%.

TECHNOLOGY UPGRADATION

FUND SCHEME (TUFS)

The Technology Upgradation Fund

Scheme (TUFS) was launched on 01.04

1999, for a period of five years, and was

subsequently extended upto March 31,

2007. The Scheme provides for interest

reimbursement/capital subsidy/Margin

Money subsidy and has been devised

to bridge the gap between the cost of

interest and the capital component to

ease up the working capital requirement

and to reduce the transaction cost, etc.

The Scheme is an important tool to infuse

financial support to the textiles industry

and help it capitalize on the vibrant and

expanding global and domestic markets,

through technology upgradation, cost

effectiveness, quality production,

efficiency and global competitiveness.

During its initial years, the progress of

the Scheme was moderate and it gained

momentum from 2004-05 onwards. The

Scheme has been further extended

till 2012 with modified financial and

operational parameters which focus

on additional capacity building, better

adoption of technology, and provides for

a higher level of assistance to segments

that have a larger potential for growth,

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ministry of textiles

like garmenting, technical textiles, and

processing. The scheme is administered

through 3 nodal agencies, 36 nodal banks

and 108 co-opted PLIs. The scheme

since inception has propelled investment

of more than Rs. 2,10,000 crores. An

amount of Rs. 13637.53 crore has been

released towards subsidy under the

Scheme as on 31.10.2011.

With effect from 28.04.2011, Restructured

TUFS has been approved with the

enhanced 11 th Plan allocation under TUFS

from Rs. 8000 crore to Rs. 15,404 crore.

The Restructured TUFS ensure focus of

interventions on hitherto slow growing

sectors like weaving, encouragement

to forward integration and tighter

administrative controls and monitoring of

the scheme. The Restructured TUFS is

expected to trigger additional investments

of over Rs. 46,900 crore during the

balance period of the XI th Five Year Plan.

Progress of TUFS

The progress of TUFS is steadily going

up which is evident from the data given

at table 1.1.

TEXTILE WORKERS’ REHABILITATION

FUND SCHEME (TWRFS)

The Textile Workers’ Rehabilitation Fund

Scheme came into force with effect from

15.09.1986 with the objective to provide

interim relief to textile workers rendered

unemployed as a consequence of

permanent closure of any particular portion

or entire textile unit. Assistance under the

Scheme is payable to eligible workers only

for the purpose of enabling them to settle in

another employment. Such assistance is not

heritable, transferable or capable of being

attached on account of any other liabilities

of the worker. The worker’s eligibility

shall cease if he takes up employment in

Table 1.1

Progress of TUFS

(Rs. in crore)

Period Received Sanctioned Disbursed

No. of

applications

Project

Cost

No. of

applications

Project

Cost

Amount

No. of

applications

Amount

Subsidy

1999-2000 407 5771 309 5074 2421 179 746 1

2000-2001 719 6296 616 4380 2090 494 1863 70

2001-2002 472 1900 444 1320 630 401 804 198.89

2002-2003 494 1835 456 1438 839 411 931 202.59

2003-2004 867 3356 884 3289 1341 814 856 249.06

2004-2005 986 7941 986 7349 2990 801 1757 283.60

2005-2006 1086 16194 1078 15032 6776 993 3962 485

2006-2007 12336 61063 12589 66233 29073 13168 26605 823.92

2007-2008 2408 21254 2260 19917 8058 2207 6854 1143.37

2008-2009 6113 56542 6072 55707 24007 6111 21826 2632.00

(P)

2009-2010 2384 28005 2352 27611 6612 2361 8140 2886

2010-2011 256 397 256 397 254 240 282 2784.18

As on

30.06.2010(P)

28528 210554 28302 207747 85091 28180 74627 11759.61

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annual report 2011-12

another registered or licensed undertaking.

The rehabilitation assistance will not be

curtailed if the worker fixes himself in a selfemployment

venture.

Progress

Till 30.11.2011, 1,12,868 workers out of

1,43,532 workers on the rolls of 86 mills

had been disbursed relief of `300.94

crore. The State-wise cumulative position

is given at table 1.2.

MEGA CLUSTER

The schemes for mega cluster

support weavers/artisans, both in and

outside the cooperative fold, including

those in Self Help Groups (SHGs),

Non- Governmental Organisations (NGOs)

etc. The schemes provide for development

of all the facets of selected clusters like

raw material support, design inputs,

up-gradation of technology, infrastructure

development, marketing support, welfare

of weavers etc. A convergence of the

existing development interventions of

the Ministry of Textiles & other Ministries/

Departments will be affected in these

clusters. The schemes also raise living

standards of the weavers/artisans by

improving the infrastructure facilities,

with better storage facilities, technology

up-gradation in pre-loom/on-loom/postloom

operations, weaving shed, skill

up-gradation, design inputs, health

facilities etc.

The development of 6 Mega Clusters in

Handloom, Handicrafts and Powerlooms

were first announced by the Finance

Minister in his Budget Speech 2008-09.

Consequently, following three Central

Sector Plan Schemes were approved

by the Cabinet Committee on Economic

Affairs (CCEA) in the meeting held on

20.11.2008:

i) Comprehensive Powerloom Cluster

Development Scheme

ii)

Comprehensive Handloom Cluster

Development Scheme

S.

No

State

No. of mills

identified

Table 1.2

No. of

workers

on roll

No. of workers benefited

(as on 30.11.2011)

No. of

mills

Workers received

relief

Disbursed

amount

(` in crores)

1 2 3 4 5a 5b 6

1. Gujarat 43 80749 43 63649 159.63

2. Maharashtra 6 9958 6 7893 23.21

3. Madhya Pradesh 5 19800 5 18857 52.64

4. Tamil Nadu 6 5685 6 4761 7.45

5. Karnataka 10 10020 10 6025 22.00

6. Delhi 1 5187 1 5170 11.93

7. West Bengal 3 2072 3 2042 5.34

8 Kerala 1 500 1 437 2.47

9. Punjab 4 6685 4 2311 8.96

10. Andhra Pradesh 7 2876 6 1723 7.31

Total 86 143532 84 112868 300.94

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iii) Comprehensive Handicrafts Cluster

Development Scheme

Based on Budget Announcement made in

2008-09, 2009-10 and 2010-11, 12 centres

are being developed as mega cluster on

a Public Private Partnership (PPP) model

to scale up infrastructure and production

in Handloom, Handicraft and Powerloom

sectors, wherein Government contribution

has been earmarked at maximum of Rs.70

crore for each mega cluster. At present,

following 12 centres are being developed

as Mega Cluster as in table 1.3.

SCHEME FOR INTEGRATED

TEXTILE PARKS (SITP)

Scheme for Integrated Textiles Parks

was approved in the 10th Five Year Plan

to provide the industry with world-class

infrastructure facilities for setting up their

textile units by merging the erstwhile

‘Apparel Parks for Exports Scheme

(APES)’ and ‘Textile Centre Infrastructure

Development Scheme (TCIDS)’.

Scope of the Scheme

The scheme targets industrial clusters/

locations with high growth potential,

which require strategic interventions by

way of providing world-class infrastructure

support. The project cost covers the cost

of common infrastructure and buildings for

production/support activities, depending

on the needs of the ITP. There will be

flexibility in setting up ITPs to suit the local

requirements.

Table 1.3

ministry of textiles

This scheme is implemented through

Special Purpose Vehicles (SPVs),

where Industry Associations/Group of

Entrepreneurs are the main promoters

of the Integrated Textile Park (ITP). At

each ITP, there would be a separate

Special Purpose Vehicle (SPV) formed

with the representatives of local Industry,

Financial Institutions, State and Central

Government. SPV shall invariably be

a Corporate Body registered under the

Companies Act. Any different structure

for the SPV requires the approval of the

Project Approval Committee. The SPVs

shall have operational autonomy so that

they do not become surrogate Public

Sector Enterprises or be controlled by

Central/State Governments.

The components of an ITP are broadly

divided in the following groups:-

(a) Group A - Land.

(b) Group B – Common Infrastructure

like compound wall, roads,

drainage, water supply, electricity

supply including captive power

plant, effluent treatment plant, and

telecommunication lines etc.

(c) Group C – Buildings for common

facilities like testing laboratory, design

center, training center, trade center/

display center, ware housing facility/

raw material depot, crèche, canteen,

workers hostel, offices of service

providers, labour rest and recreation

facilities etc.

Handlooms:

4 Mega Clusters

1. Varanasi (U.P).

2. Sivsagar (Assam).

3. Murshidabad (W.B.).

4. Virudhunagar (T.N)).

Handicrafts:

5 Mega Clusters

5. Moradabad (U.P.)

6. Narasapur (A.P.).

7. Bhdohi-Mirzapur (U.P.).

8. Srinagar (J&K).

9. Jodhpur (Rajasthan)

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Powerloom:

3 Mega Clusters

10. Bhiwandi (Maharastra).

11. Erode (Tamil Nadu).

12. Bhilwara (Rajasthan).


annual report 2011-12

(d) Group D – Factory buildings for

production purposes.

(e) Group E- Plant & machinery.

The total Project Cost for the purpose of

this Scheme includes the cost on account

of components of ITP, as listed under

Groups A, B, C and D above, provided the

ownership of the factory buildings vests

with the SPV. The SPV will, however, have

the option of seeking financial support

from Government of India for components

under Groups B and C only, if factory

buildings are individually owned.

A panel of professional agencies has

been appointed as Project Management

Consultants (PMCs) for implementing the

Scheme.

The PMCs will be responsible for the

speedy implementation of the Projects in

a transparent and professional manner

so as to achieve high degree of quality at

a low cost acceptable to the members of

the SPV for which fee will be paid to the

PMCs by the Ministry of Textiles.

The PMCs will report to Ministry of

Textiles, which shall directly supervise

the implementation of projects under the

superintendence and control of Secretary

(Textiles). The project proposal as

submitted by PMCs shall be considered

and appraised by the Project Scrutiny

Committee (PSC) headed by JS (SITP),

Ministry of Textiles. Project Scrutiny

Committee will appraise all the proposal

submitted by PMCs in terms of the project

components, viability, feasibility and time

lines of each project. The Committee

shall look into the utility of the projects in

terms of modernization & integration of

supply and management chain, and make

the final recommendations to Project

Approval Committee (PAC). The Project

Approval Committee will consider and

approve the recommendations of Project

Scrutiny Committee headed by Minister

of Textiles with Secretary (Textiles), and

JS, Ministry of Textiles in charge of SITP

as members.

Funding Pattern

The Government of India’s (GOI) support

under the Scheme by way of Grant or

Equity will be limited to 40% of the project

cost subject to a ceiling of Rs. 40 crore.

GOI support under the Scheme will be

generally in the form of grant to the SPV

unless specifically decided to be equity.

However, the combined equity stake of

GOI/State Government/State Industrial

Development Corporation, if any, should

not exceed 49%.

However, GOI support will be provided @

90% of the project cost subject to a ceiling

of Rs. 40 crore for first two projects in the

States of Arunachal Pradesh, Assam,

Manipur, Meghalaya, Mizoram, Nagaland,

Tripura, Sikkim and Jammu & Kashmir.

Status of Implementation

TEXTILE CENTRE INFRASTRUCTURE

DEVELOPMENT SCHEME (TCIDS):






18 Projects sanctioned

GOI Share Rs.268.86 crores.

Released Rs.210.59 crores

Four Projects completed, Kannur-

Kerala, Bhiwandi-Maharashtra, and

Tirupur- Tamil Nadu, Pandesara-

Surat.

One project nearing completion i.e.

SEWA-Gujarat

APPAREL PARKS FOR EXPORTS

SCHEME (APES)


12 Projects sanctioned

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GOI Share Rs.185.22 crores.

Future Programme

ministry of textiles




Released Rs.130.85 crores

Four Projects completed – Bangalore-

Karnataka, Thiruvananthapuram-

Kerala, Tirupur-Tamil Nadu, and

Tronica City-Uttar Pradesh

One project of Kanpur – Uttar Pradesh

nearing completion (Training centre

component yet to be completed)

Scheme for Integrated Textile Parks

(SITP):





As per the target, forty (40) Textiles

Park projects have been sanctioned.

Estimated project cost (for common

infrastructure and common facilities)

of the 40 sanctioned projects is Rs.

4133.09 Crore, of which Government

of India assistance under the scheme

would be Rs. 1419.69 Crore.

An amount of Rs. 992.43 Crore has

been released under SITP.

2292 entrepreneurs will put up their

units in these parks covering an

area of 4307.97 Acre. The estimated

investment in these parks will be Rs.

19456.90 Crore and estimated annual

production will be Rs. 33568.50

Crore.

● Andhra Pradesh (5), Gujarat (7),

Maharashtra (9), Tamil Nadu (8),

Rajasthan (5), Karnataka (1), Punjab

(3), West Bengal (1), Madhya

Pradesh (1).

● Seven projects have been

completed–Brandix & Pochampally-

Andhra Pradesh, Gujarat Eco Textile

Park & Mundra – Gujarat, Palladam

Hi-Tech Weaving Park, Karur – Tamil

Nadu and Islampur Integrated Textile

Park, Maharashtra. Production has

been started in 24 out of 40 projects.

Considering the overwhelming response

to the scheme and opportunities for

growth of the textiles industry and in

view of the consistent requests from

State Governments, industry groups

and entrepreneurs for setting up of new

textile parks, a note was submitted by

the Ministry of Textiles for consideration

of the Cabinet Committee on Economic

Affairs for approval of more Textile

Parks. The CCEA has approved the

proposal for sanction of additional parks

under SITP to utilize the balance Rs.

200 Crore in the 11th Five Year Plan and

number of projects be limited in such a

way that committed liability of the new

parks does not exceed Rs. 200 Crore

in the 12th Five Year Plan. The CCEA

also approved the revised guidelines

enabling a two tier scrutiny and approval

mechanism. The proposals received

for new parks have been examined by

the Project Scrutiny Committee (PSC)

comprising representatives from Ministry

of Finance, Planning Commission,

Ministry of Commerce & Industry, and

Ministry of Environment & Forest. After

examination by PSC, 21 new Textile

Park proposals have been approved by

the Project Approval Committee under

the Chairmanship of Minister of Textiles

with Secretary (T) and JS concerned as

members.

INTEGRATED SKILL DEVELOPMENT

SCHEME (ISDS)

Objectives of the Integrated Skill

development Scheme:

1. To address the trained manpower

needs of textiles and related

segments by developing a cohesive

and integrated framework of training

based on the industry needs.

Addressing this need is critical for

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annual report 2011-12

Garmenting Training, ATDC, Patna

enhancing the competitiveness of the

industry in the globalised economy.

2. To increase the employability of

residents of the target areas through

imparting of skills in the above

segments.

3. To ensure that the scheme is so

designed as to cater to the wide range of

skill sets required in various segments

as listed above, while simultaneously

ensuring sufficient flexibility to meet

the dynamic needs of these segments

over a period of the next five years.

4. To create a trainers’ pool by conducting

the advance training programmes at a

cluster level.

5. To ensure training in design

development programmes, this

is critical for handloom weavers/

handicraft artisans/jute artisans,

to help them produce diversified

products with innovative uses and

improved quality to meet changing

market trends.

Scope of the Scheme:

The scheme proposes to leverage on the

existing strong institutions and training

experience within the Ministry under

the Component I and ensures private

sector participation through a PPP Model

under Component II. Demand driven

courses ranging from Basic Training,

Skill upgradation, Advanced Training

in emerging technologies, Training of

Trainers, orientation towards modern

technology, retraining, skill upgradation,

managerial skill, entrepreneurship

development etc. in sectors such as

Apparel/ garmenting, powerlooms,

Handicrafts, Handlooms, Sericulture, Jute,

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ministry of textiles

Technical Textiles etc. are allowed under

the Scheme. The Scheme targets to train

approximately 26.75 lakh persons over a

period of 5 years.

Funding pattern:

The Govt. provides assistance to the extent

of 75% of the total cost of the project, and

balance 25% is envisaged to be met from

Fee/ Industry Contribution. However, the

Empowered Committee is authorized to

approve a higher level of government

assistance in courses/ programmes (of

Component – I) where it is not feasible to

organise the beneficiary contribution. The

average grant per trainee is estimated as

Rs. 7300/-

Progress of Implementation

Component I:

Under the Component I of ISDS, 18

proposals have been approved so far.

The implementing agencies are the

Textile Research Associations, Apparel

& Textile Design Centres, Institutions

under DC Handicrafts, DC Handlooms,

Textiles Committee and Office of Textiles

Commissioner, Central Silk Board etc. The

proposals cover all the sub sectors under

Textiles. The projects are proposed to be

implemented in 17 States namely Andhra

Pradesh, Assam, Bihar, Chattisgarh,

Gujarat, Jammu & Kashmir, Jharkhand,

Karnataka, Madhya Pradesh, Maharashtra,

Orissa, Punjab, Rajasthan, Tamil Nadu,

Uttar Pradesh and West Bengal.

A total of 437177 candidates are proposed

to be covered under the Scheme over a

period of five years out of which the first

year target is 54495. In the first year of

implementation 20269 trainees have

been enrolled by the agencies and 14552

trainees have passed out. The total cost

of the approved projects is Rs. 434.84

Cr, out of which Rs. 323.15 is the grant

assistance under the Scheme.

A special dispensation has been allowed

by the Empowered Committee to projects

covering North Eastern and special category

States. Special dispensation has also been

extended to projects in unorganized sectors

proposing to cover marginalized and weaker

sections of the society, who find it difficult

to forego their daily wages and pay for the

training programme.

The proposed courses are demand driven

and the curriculum has been designed

keeping the industry requirement in mind.

An online MIS www.isds-mot.com has

been designed to capture the progress

of the projects. A skills exchange is also

envisaged under the scheme to bridge

the demand and supply gap for trained

manpower in the textiles industry and

also to provide placement linkages to

the trainees.

DECENTRALISED

SECTOR

POWERLOOM

The decentralised powerloom sector

is one of the most important segments

of the Textile Industry in terms of fabric

production and employment generation.

It provides employment to 57.44 Lakh

persons and contributes 62 percent to

total cloth production in the Country. 60%

of the fabrics produced in the powerloom

sector is of man-made. More than 60%

of fabric meant for export is also sourced

from powerloom sector. The readymade

garments and home textile sectors are

heavily dependent on the powerloom

sector to meet their fabric requirement.

There are approximately 5.19 Lakh

Powerloom Units with 22.98 Lakh

Powerlooms as on 31.08.2011. The

technology level of this sector varies from

obsolete plain loom to high tech shuttleless

looms. There are approximately

1,05,000 shuttleless looms in this sector.

It is estimated that more than 75% of the

shuttle looms are obsolete and outdated

12


annual report 2011-12

with a vintage of more than 15 years and

have virtually no process or quality control

devices / attachments. However, there

has been significant upgradation in the

technology level of the powerloom sector

during the last 5-6 years.

Growth in the Powerloom Sector

The estimated number of powerlooms in

the decentralised sector in the country till

31.08.2011 was 22,98,050.

COTTON

Cotton is one of the major crops cultivated

in India. It accounts for more than 75% of

the total fibre consumption in the spinning

mills and more than 54% of the total fibre

consumption in the textile sector. The

twin objective of assuring off-take of the

farmer’s produce at remunerative prices

and making available adequate quantity

of cotton at a reasonable prices to the

domestic textile industry, are sought to be

achieved through timely announcement

of remunerative Minimum Support Price

(MSP) to the farmer and through appropriate

export-import intervention as and when

necessary. The New Textile Policy aims

at improving the quality of cotton to that of

international standards through effective

implementation of the Technology Mission

on Cotton (TMC).

Production and Consumption




During the last five decades, the

production of cotton increased from

30.00 lakh bales of 170 kgs. each

in 1950-51 to an all-time record of

356.00 lakh bales of 170 kgs. each

during 2011-12.

Acreage under cotton cultivation has

also increased and from 58.82 lakh

hectares in 1950-51 to a record high

of 121.91 lakh hectares in 2011-12.

The average yield has also increased

from 88 kgs. in 1950-51 to 554 kgs. in

2007-08.





Due to receipt of good prices by the

cotton farmers for their produce in

previous cotton season there has

been significant increase in cotton

acreage under cotton in cotton

season 2011-12. Acreage under

cotton cultivation has increased by

10% to 121.91 lakh hectares in 2011-

12 as against 111.42 lakh hectares

in the previous season. The rise in

acreage has been mainly due to

switching from other competing crops

viz., maize, jawar, pulses etc. With

various governmental measure to

improve farm practices and release

of Bt seeds have enabled the farmers

to sustain their continued interests in

cotton cultivation.

One of the reasons for low yield in

India as compared to world average

of about 745 kgs/hectare is that

nearly 65% of the area under cotton

cultivation is rainfed. Despite delayed

sowing and subsequent continuous

rains in Northern and Central

zone, with subsequent favourable

agro-climatic conditions, the crop

progress is satisfactory in all the

cotton growing States. As a result,

the cotton production in the country

is also expected to increase by 10%

to 356.00 lakh bales as against the

last year.

The largest share in the total

production of cotton is of long staple

varieties followed by medium and

medium long staple. The share of

short staple is about 1% and the

share of medium & medium long

staple varieties was around 20% and

the remaining are long and extra long

staple varieties.

In recent years, there has been a

shift in the cultivation pattern and

farmers have switched over to high

yielding long staple varieties from

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ministry of textiles


the medium staple varieties. The

main cotton producing States are

Maharashtra, Gujarat, Andhra

Pradesh, Madhya Pradesh, Punjab,

Haryana, Rajasthan, Karnataka,

Tamil Nadu.

Domestic consumption of cotton

fibre has witnessed sustained

growth since 2003-04 onwards

due to growing demand for Indian

textiles and subsequently, there has

been considerable expansion and

modernization of textile mills.

● Even though the Indian cotton

consumption has increased with

rapid pace in the last few years,

still it has not kept pace with the

growth in domestic cotton production

resulting into surplus availability

for exports. The consumption level

including consumption of spinning

units in the Small Scale Sector

and non-mill consumption during

2011-12 has been 250.00 lakh bales

as against 253.00 lakh bales in the

previous year.


The projected slowdown in global

economic growth in 2011 and 2012

is expected to affect the cotton

consumption of textile products and

therefore demand for cotton fibre

domestically and internationally.

Cotton consumption is likely to be

influenced by the cotton farmers in

the previous cotton season. As a

result, the consumption is estimated

at 250.00 lakh bales in 2011-12 as

against 253.00 lakh bales in previous

year.

SERICULTURE & SILK INDUSTRY

India continues to be the second largest

producer of silk in the World. Among the

four varieties of silk produced, as in 2010-11,

Mulberry accounts for 80.2% (16360 MT),

Eri 13.5% (2760 MT), Tasar 5.7% (1166 MT)

and Muga 0.6% (124MT) of the total raw silk

production in the country.

Sericulture is an important labourintensive

and agro-based cottage

industry, providing gainful occupation to

around 7.25 million persons in rural and

semi-urban areas in India. Of these, a

sizeable number of workers belong to the

economically weaker sections of society.

There is substantial involvement of women

in this Industry.

In the Fifth year of the XI Plan i.e.,

2011-12, the provisional production

data received up to April – December

period it is seen that the production of

mulberry raw silk increased by 11.8% (to

13080 MT) compared to the production

of 11696 MT in the same period of the

previous year (2010-11). Vanya raw silk

production was increased by 4.0% (2170

MT) during April – December period of

the year 2011-12 as compared to the

production of 2087 MT during the same

period of the year 2010-11.

RESEARCH AND DEVELOPMENT

The main Research & Training Institutes

of the CSB provide R&D and Training

support for the development of sericulture.

The institutes at Mysore (Karnataka)

Berhampore (West Bengal) and Pampore

(J&K) deals with mulberry sericulture.

One at Ranchi (Jharkhand) deals with

Tasar culture. The institute established

at Lahdoigarh, Jorhat (Assam) deals with

Muga and Eri culture. Regional Sericulture

Research Stations (RSRS/RTRS/RERS)

for mulberry and non-mulberry has

been functioning for adoptive Research,

refining and dissemination of the research

findings and of tackling the regional field

issues of the industry. Besides, a network

of Research Extension Centre (RECs)

& its sub units for mulberry and non

mulberry are also functioning to provide

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annual report 2011-12

extension support to sericulturists. In

order to provide R&D support in post

cocoon sector, the Board has established

a Central Silk Technological Research

Institute (CSTRI) at Bangalore. In

addition, the CSB has also set up a

Silkworm Seed Technology Laboratory

(SSTL) in Bangalore (Karnataka), a

Central Sericultural Germplasm Resource

Centre (CSGRC) at Hosur (Tamil Nadu)

and a Seri-Biotech Research Laboratory

(SBRL) at Bangalore.

During 2011-12, 40 Research projects

are continued. Further, 29 new research

projects were initiated. Against a target

of 30 Research Projects scheduled to be

completed, 23 projects have already been

concluded (up to November 2011) and

remaining 7 projects will be concluded by

March 2012.

TRANSFER OF TECHNOLOGY

In order to increase productivity and quality

of silk, a chain of Research Extension

Centres are engaged for transfer of

technologies from Research Institutes to

the field.

SEED ORGANISATION (SILKWORM

SEED PRODUCTION AND SUPPLY)

Under National Silkworm Seed

Organization (NSSO) a network of 19

Basic Seed Farms (BSF) produce and

supply the basic seed for production of

commercial silkworm seed in the seed

production centres functioning under CSB

and State Departments. 19 Silkworm

Seed Production Centres (SSPCs) are

functioning under NSSO in different States

to support the industry. Similarly, on the

tasar side, the CSB has established 21

Basic Seed Multiplication & Training

Centres (BSM&TC) and one Central Tasar

Silkworm Seed Station (CTSSS) for supply

of tropical tasar basic seed & 1 oak tasar

grainage and 3 REC-Cum-BSM&TCs for

supply of oak tasar basic seed. Under

muga sector, 8 Basic Seed Farms and

1 Silkworm Seed Production Centre are

functioning. For production and supply of

eri seed, CSB has established 5 Silkworm

Seed Production Centres.

Emphasis was given towards production

of quality dfls by adopting Quality

Management System in seed production

under ISO 9001:2008 certification in

18 SSPCs. During 2011-12 four more

SSPCs are to be covered under ISO

certification.

ESTABLISHMENT OF COCOON TESTING

UNITS

In order to facilitate cocoon testing in

different cocoon markets of the country

an amount of Rs. 1.00 lakh ( unit cost) is

provided towards procurement of testing

equipments. It is proposed to establish

25 such Units during XI plan. The entire

assistance is provided by Central Silk

Board. During the year 2011-12 a total of

5 units located in the state of Karnanataka

and West Bengal of Procurement /

Establishment is under progress viz., at

Shirahatti/H.Cross/Vijayapura/Malavalli-

Karnataka, Khaliachack- WB.

SILK MARK ORGANIZATION OF INDIA

(SMOI)

The Ministry of Textiles, Govt. of India came

up with an initiative for the protection of

the interests of the consumers and other

stakeholders of the silk value-chain by

bringing out “Silk Mark” Scheme in June

2004. Silk Mark, the Quality Assurance

Label signifying that a product to which

it is affixed is made of pure silk was

launched by the Silk Mark Organisation

of India (SMOI), a registered Society

promoted by the Central Silk Board. Silk

Mark labels can be affixed to primary,

intermediate and finished products of silk

including yarn, fabric, sarees, made-ups,

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ministry of textiles

garments, carpets, etc.

The Silk Mark Scheme is aimed at

protecting the interests of the users and

connoisseurs of silk, and for the generic

promotion of silk and also for building

brand-equity of Indian Silk.

Since the launch of Silk Mark in June

2004, over 1800 members have joined

the Organisation, of whom, more than

1700 have become Authorized Users.

More than 1.35 crore of Silk Mark labelled

products have reached the market for the

benefit of consumers.

During 2011-12 (up to November 2011)

168 members joined SMOI, of which, 157

members have enrolled as Authorised

Users and 16.12 lakhs of Silk Mark Labelled

products have reached the market. During

2011-12 (upto November 2011) SMOI

participated in as many as 296 exhibitions/

Workshops/ Road shows etc.

Anticipated achievement up to March

2012 is as follows:

1. Members – 300 Nos.

2. Authorised users – 300 Nos.

3. Sale of Silk Mark label – 30.00 lakhs

4. Awareness programmes / Workshops

/ Exhibitions / Road Shows etc. - 340

Nos.

Nineteen Silk Expos have been planned

during the year 2011-12 and 10 such

Expos have already been conducted at

various cities till November, 2011.

THE JUTE AND JUTE TEXTILES

INDUSTRY

The Jute industry occupies an important

place in the national economy of India. It

is one of the major industries in the eastern

region, particularly in West Bengal. Jute,

the golden fibre, meets all the standards

for ‘safe’ packaging in view of being a

natural, renewable, biodegradable and

eco-friendly product. It is estimated that the

jute industry provides direct employment

to 0.37 million workers in organized mills

and in diversified units including tertiary

sector and allied activities and supports

the livelihood of around 4.0 million farm

families. In addition, there are a large

number of persons engaged in the trade

of jute.

In the world perspective, India is the

major producer of both raw jute and jute

products. Out of the total world production

of Jute, Kenaf and allied fibre of 3.0 million

tonnes in 2007-08, India produced 1.8

million tonnes. In percentage terms India

accounted for 60 % of world production

in 2007-08. Global production of jute and

allied fibres is estimated to have increased

by 25 % to 3.0 million tonnes in 2007-08

compared to 2004-05 season. Production

in India has also increased by 28% to 1.8

million tonnes in 2007-08 over 2004-05.

There are 83 composite jute mills in India.

Out of the total 83 jute mills, 64 jute mills

are located in West Bengal, 3 each in

Bihar and U.P., 7 in Andhra Pradesh 2

each in Chattisgarh & Orissa and 1 each

in Assam and Tripura. Ownership- wise

division is:- 6 mills are under Government

of India’s P.S.U., 1 mill (Tripura) is under

State Government, 2 mills (Assam & New

Central) are in the co-operative sector and

74 are privately owned mills.

As on 31-01-2010 total number of looms

installed in the jute industry stood at 48,245

consisting of 23,372 Hessian looms,

22,148 sacking looms, 1,058 C.B.C looms

and others at 1,060. The installed spindles

in jute mills other than 100% export oriented

units were 731,408 comprising of 622,324

fine spindles and 109,084 coarse spindles.

Installed spindles in 100% export oriented

16


annual report 2011-12

units stood at 9,482 with fine spindles at

6,974 and coarse spindles at 2,508. The

maximum installed capacity in jute mills

other than 100% export oriented units (on

the basis of 305 working days per year) is

estimated to be of 2.47 million tonnes per

annum.

HANDLOOMS

Handloom weaving is one of the largest

economic activities after agriculture

providing direct and indirect employment

to more than 43 lakh weavers and allied

workers. This sector contributes nearby

15% of the cloth production in the

country and also contributes to the export

earnings of the country. 95% of the world’s

handwoven fabric comes from India.

Production in the Handloom Sector

increased

Resultant to the developmental and

welfare measures initiated by the

Government of India, the declining trend

in production in the handloom sector had

been arrested and from the year 2004-05

(except year of recession in 2008-09) there

in fact has been a considerable growth in

production in the sector. Production in the

handloom sector recorded a figure of 6949

million sq. meters in the year 2010-11,

which is about 26% over the production

figure of 5493 million sq. meters recorded

in the year 2003-04.

Revival, Reform and Restructuring

Package for Handloom Sector

The “Revival, Reform and Restructuring

Package for Handloom Sector” has been

approved with the total financial implication

of Rs. 3884 crore, out of which Government

of India’s share is Rs. 3137 crore and the

share of the State Governments is Rs. 747

crore. The Package covers loan waiver

of 100% of principal and 25% of interest,

which is overdue as on 31.03.2010 in

respect of weavers and their societies.

Interest subsidy of 3% for 3 years will be

extended with guarantee of the fresh loan

extended by banks to the eligible handloom

cooperative societies and individual

handloom weavers.

Comprehensive Package for the

Handloom Sector

To meet the two critical needs of cheap

credit and cheap hank yarn for the

handloom sector, the Government has

approved a comprehensive package for

handloom sector. The components of

comprehensive package are implemented

through two existing Plan schemes i.e.

Integrated Handlooms Development

Scheme for availability of cheap credit,

and Mill Gate Price Scheme for availability

of subsidised hank yarn. For easy credit

availability to handloom weaver, the

Government of India will provide margin

money assistance @ Rs.4200/- per

weaver, interest subvention at 3% per

annum for 3 years and credit guarantee

for 3 years by the Credit Guarantee Fund

Trust for Micro and Small Enterprises

(CCTMSE).

To ensure yarn availability at reasionable

prices, 10% price subsidy on domestic

silk yarn and cotton yarn have been

approved by the Government of India.

Further the rate of freight reimbursement

for transportation of different types of yarn

has also been enhanced suitably in order

to offset the increase in fuel cost.

The projected financial outlay involved

in the implementation of these proposals

during the current year 2011-12 and the

12 th Plan period is Rs. 2362.15 crore. The

comprehensive package will benefit all the

handloom weavers and their cooperative

societies in the country as per the budget

allocation, in addition to 3 lakh handloom

weavers and 15,000 cooperative

societies already covered under the

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ministry of textiles

Financial Package approved earlier.

These interventions aim at bringing about

a paradigm shift by converting individual

weavers into micro entrepreneurs by

empowering them with cheap credit and

yarn. Individual weavers will now be able

to command a better price in the market

for their products.

Handloom Weaver Credit Card (WCC)

Scheme

Handloom sector largely comprises of

small and tiny units, which fall mostly

under the unorganized sector and

that credit needs of a large number of

weavers are being met through informal

channels.

The WCC Scheme aims at providing

adequate and timely assistance from the

Banking institutions to the weavers to

meet their credit requirements, i.e., for

investments needs as well as for working

capital of Rs.30,000-50,000 per borrower

in a flexible and cost effective manner.

Weaver Credit Card (WCC) Scheme

dovetailed with other Government

programmes will go a long way in

supporting the government initiatives to

fulfill the objective of financial inclusion.

Credit Guarantee through Credit

Guarantee Fund Trust For Micro And

Small Enterprises (CGTMSE):

The Credit Guarantee Fund Trust for

Micro and Small Enterprises (CGTMSE)

was set up in July, 2000 jointly by GOI

and SIDBI. The trust provides guarantee

cover to term loan and working capital

facilities sanctioned by its member lending

institutions without collateral security

to eligible units in the Micro and Small

Enterprises Sector.

It has been decided to provide a credit

guarantee cover for working capital/term

loan assistance by Government of India on

behalf of the eligible Handloom Weavers

to enable them to access credit without

any collateral security. The Government

of India will pay the Guarantee Fees and

Annual Service Charges (as applicable)

on behalf of the borrowers, for loans of

upto Rs. 50,000 per weavers under Credit

Guarantee Fund Trust for Micro and Small

Enterprises (CGTMSE) Scheme. This will

cover 85% of the amount in default.

585 Handloom Clusters taken up for

development.

The Integrated Handlooms Development

Scheme(IHDS) has been launched

with a view to develop holistically and

comprehensively the weavers’ clusters

throughout the country. Under this scheme,

585 Handloom clusters have been taken

up during XI th Plan (upto 21.02.2012) and

financial assistance of Rs 176.11 crore has

been released to various Implementing

agencies through the State Government for

various components like skill upgradation,

setting up of CPC/Dye House, marketing,

formation of consortium etc.

71 Lakh Weavers covered under the

Health Insurance Scheme

The Health Insurance Scheme provides

health care facilities to the handloom

weavers and their families. 71.24 lakh

weavers have been covered/enolled

during the XIth Plan under this scheme

which extends benefit to more than 284

lakh persons including spouse and two

children of the weaver covered.

Yarn supply under the Mill Gate Price

Scheme

788 yarn depots, covering all the

handloom clusters, have been set up

by the NHDC to ensure steady and

timely supply of requisite yarn at Mill

Gate Price to the handloom weavers.

18


annual report 2011-12

Supply of yarn by the National

Handloom Development Corporation

(NHDC) under the Mill Gate Price

Scheme having increased considerably

and registered a figure of 1105.96 lakh

kgs. valued at Rs.1195.55 core in the

year 2010-11 as compared to 682.14

lakh kgs yarn valuing Rs.567.48 core

supplied in the year 2007-08.

Sant Kabir Award

This award is conferred every year,

beginning from the year 2009 on such

outstanding weavers who have made

valuable contribution in keeping alive the

handloom heritage. Each award consists

of one mounted gold coin, one shawl and

a citation. In addition, financial assistance

to the extent of Rs. 6.00 lakh is also given

to each of the Sant Kabir Awardee to

innovate and create 10 new products of

high level of excellence, of high aesthetic

value and of high quality. 10 handloom

weavers have been selected to confer

Sant Kabir Award for the year 2009.

Brand building through Handloom

Mark:

The Handloom Mark has been launched

to serve as a guarantee to the buyer

that handloom product being purchased

is genuine handwoven product and not

a powerloom or mill made product. The

Textiles Committee is the Implementing

agency for promotion of Handloom

Mark. As on 31.01.2012, 241.21 lakh

(cumulative) handloom mark labels have

been sold to 8737 stakeholders. 812

retails outlets are selling handloom goods

with Handloom Mark label.

Handloom Week

To promote, popularize and create

awareness about the handloom products

Handloom Week is celebrated every year

from 21st Dec. to 27th Dec. During the

Handloom week, number of promotional

and awareness programmes, publicity

through newspapers, magazines, outdoor

publicity, through electronic media were

undertaken.

Marketing Events

The target of marketing events for the

year 2011-12 has been increased to 700

No. from 680 No. sanctioned during the

year 2010-11 to give adequate opportunity

to handloom weavers and their societies

to market their products directly to the

consumers without the intervention of the

middlemen. 740 marketing events have

been sanctioned during the current year

2011-12 till 31 st Jan., 2012.

Exhibition of Handloom Products

Exhibition-cum-Sale of Handloom

Items during the ‘India Day’ at Lal

Bahadur Shastri National Academy of

Administration ( LBSNAA), Mussoorie

was organised during July 2011 and again

in Oct. 2011.

A Buyer Seller Meet was organized in

September 2011 at Jaipur to promote

and preserve traditional Kota Doria and

showcased wide range of Kota Doria

products.

A Master Creation Programme has

been organised at Dilli Haat, INA, New

Delhi from 1 st to 15 th Dec. 2011 wherein

National awardees had exhibited

their products for sale directly to the

public. Loom demonstration has also

been made during the programme. An

exhibition- cum-sale ‘Himcraft’ of woolen

products developed in clusters of

Himachal Pradesh was held during the

“Handloom Week” on 24-26 th December,

2011 at India Islamic Center, New Delhi

where the Handloom weavers exhibited

and sold their products to public.

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ministry of textiles

Special project for development of

Tripura Handlooms.

Special Project for Development of

Tripura Handlooms has been approved at

the cost of Rs.9.12 crore over three years,

and is likely to benefit 960 handloom

weavers and ancillary workers because

it envisages an overall development of

the dispersed units spread across the

remote interiors of the hilly terrain in the

State of Tripura.

HANDICRAFTS

The Handicrafts Sector plays a significant

& important role in the country’s economy.

It provides employment to a vast segment

of craft persons in rural & semi urban

areas and generates substantial foreign

exchange for the country, while preserving

its cultural heritage. Handicrafts have

great potential, as they hold the key for

sustaining not only the existing set of

millions of artisans spread over length

and breadth of the country, but also for

the increasingly large number of new

entrants in the crafts activity. Presently,

handicrafts contribute substantially to

employment generation and exports.

The Handicraft sector has, however,

suffered due to its being unorganized,

with the additional constraints of lack of

education, low capital, poor exposure to

new technologies, absence of market

intelligence, and a poor institutional

framework. In spite of these constraints,

sector has witnessed a significant

growth and efforts are being augmented

during the current plan on the following

core issues for the development of the

sector.

= Providing infrastructural support for

production & exports.

= Improve quality & product

diversification with more awareness

for both stakeholders & consumer.

= A greater role for NGO as

implementing partners and

participation of private resources

–both human and financial.

The sector is estimated to employ Rs

68.86 lakh artisans. At present the export

of handicrafts including handmade

carpet has been 10651.93 crores (April-

Dec. 2011) which shows an increase of

30.97% over the same period in financial

year 2010-11, and the plan allocation is at

present Rs. 245.00 crores in 2011-12.

Handicrafts activity being a State subject,

its development and promotion are the

primary responsibility of every State

Government. However, the Central

Government is supplementing their efforts

by implementing various developmental

schemes.

Sardar Vallabhbhai Patel

International School of Textiles

and Management (SVPISTM)

Sardar Vallabhbhai Patel International

School of Textiles and Management

(SVPISTM), Coimbatore is an autonomous

institute under the Ministry of Textiles. It

was established in 2004 as the Sardar

Vallabhbhai Patel Institute of Textile

Management (SVPITM), a product of

the collaborative effort of the Ministry of

Textiles, Government of India and the

associations of the textile industry. Among

the industry associations involved in

the establishment of the Institution were

Southern India Mills’ Association (SIMA),

Tirupur Exporters’ Association (TEA) and

Powerloom Development and Export

Council (PDRXIL).

Since inception, the School has been

vibrant and taking bold initiatives in

achieving its objectives. Apart from running

its own long term programmes of Post

Graduate Diploma in Management with

specialisation in Textiles and Management,

20


annual report 2011-12

it has associated with IGNOU in evolving

an exclusive MBA in Textiles Management.

The course is now offered at the School

premises as face-to-face programme and

is involved in developing course material

for the programme to be offered under

distance mode. It is affiliated to Bharatiar

University, Coimbatore to offer research

programmes, M.Phil and Ph.D in textiles

management. It has taken active role in

conducting industry specific short term

programmes in the form of Management

Development Programmes and

Entreprenuer Development Programmes

for textile industry personnel in general

and has been repeatedly conducting inhouse

programmes for certain textile

units.

It has entered into Memorandum of

Understanding (MOU) with industry

associations and academic institutions

of India and abroad, to bring about the

synergy of different knowledge centres

and foster research in the emerging area

of the industry, for the ultimate benefit of

the textile industry.

The School is embarking on launching an

integrated five year programme – B.Tech

(Technical Textiles) with MBA. It will be

offering a specialised course of MBA in retail

management, with particular reference to

textile industry. It is also planning to launch

further programmes in the specialised

areas of textiles and ultimately emerge

as a centralised knowledge warehouse in

matters relating to textiles, with the status

of a National Textile University, which the

industry can draw upon.

In order to lay sound foundation for the

new and challenging roles, the School

has engaged the Educational Consultants

of India Limited(Ed.CIL) for advice on

the infrastructure to be created and other

courses of action to be taken. The School

is poised for a strong and well-rounded

growth to emerge as a force to reckon with

in the industry.

NATIONAL INSTITUTE OF FASHION

TECHNOLOGY (NIFT)

National Institute of Fashion Technology

has completed 25 years in the domain

of fashion education in India in 2011.

A pioneer in the field of fashion in the

three streams of Design, Technology &

Management, the growth of NIFT has

paralleled the emergence of India in the

global scenario as a significant player.

Since its inception in 1986 with modest

beginnings in Delhi, it has emerged as a

15-center institute with a strong national

& global presence.

Dynamic changes in the market and

consumption patterns resulting in

restructuring and consolidation with

renewed interest in investment, emerging

trends and business opportunities in

the intensely competitive domestic

environment, challenges of globalization,

information and networking explosion,

increasing national concern for the

environment and sustainability have had

a significant cumulative impact on the

fashion industry.

The 15 centers of NIFT are Bengaluru,

Bhopal, Bhubaneswar, Chennai,

Gandhinagar, Hyderabad, Jodhpur,

Kangra, Kannur, Kolkata, Mumbai, New

Delhi, Patna, Raebareli and Shillong.

There are more than 7000 students

across these canters pursuing UG and

PG degrees in 10 streams.

NIFT has played a pioneering role in

contributing to various segments of the

textile, apparel, lifestyle accessories,

leather, knitwear and communication

industry. It has been successful in creating

a widespread awareness and sensitivity

to fashion as a serious business in India

and evolving a professional ethos with

a distinct signature style on the global

fashion map. The NIFT alumni have

created a niche for themselves in the top

echelons of the fashion Industry and have

21


created a wide network thereby supporting

aspiring students to gain ingress into the

professional sphere.

ACTIVITIES RELATED TO

PROGRESSIVE USE OF OFFICIAL

LANGUAGE

Hindi is the Official Language of the Union

of India and the policy of the Government

aims at progressive use of Hindi in official

work. Effective steps have been taken

during the year in the M/o Textiles to ensure

compliance with the Official Language

Policy of the Government; implementation

of the annual programme and compliance

with the various orders of the Government

of India on the recommendations of the

Committee of Parliament on Official

Language.

Compliance with the provisions of the

Official Language Act, 1963

All documents such as resolutions,

general orders, rules etc., under Section

3(3) of the Official Language Act and

all papers laid on the Table of both the

Houses of Parliament were issued

bilingually, i.e. in Hindi and English.

General orders meant for departmental

use were issued in Hindi only.

Sections specified for working in Hindi

The 15 Sections of the Ministry which

have been specified for doing hundred

per cent work in Hindi, are working

satisfactorily.

Monitoring and inspections

In order to ensure compliance with the

Official Language Policy, monitoring is

done through reviewing the quarterly

progress reports. During the year, apart

from the Sections of the Ministry, three

head offices and thirteen sub-offices

of organizations under the control of

*****

ministry of textiles

the Ministry were inspected to ensure

progressive use of Hindi and compliance

with the Official Language policy.

Training of Officials

Three officials in the Ministry are being

trained in Hindi typing.

Use of Mechanical aids

As per the provisions of the Official

Language Act, facilities have been

provided on all the computers in the

Ministry, to work in Hindi.

Committees

The meeting of the Hindi Salahar Samitee

has been organised on 8 th December,

2011 in the Ministry of Textiles under the

Chairmanship of Minister of State for

Textiles.

The Departmental Official Language

Implementation Committee in the M/o

Textiles has been constituted under the

Chairmanship of the Joint Secretary (In-

Charge Hindi). The Quarterly meetings of

the Committee were organized and followup

action was taken for compliance of

decisions for use of Hindi in official work.

Hindi Fortnight

Hindi Fortnight was celebrated during

14-30 September, 2011 in the Ministry.

Various competitions like Hindi Essay,

Hindi Noting & Drafting, Hindi Debate,

Hindi Poetry Recitation, Dictation, Hindi

Gyan and Hindi Typing were organized to

encourage and motivate the employees

for doing official work in Hindi. A large

number of officers and staff participated

in these events with enthusiasm. Appeals

from Minister of Textiles, Minister of State

for Textiles and Secretary (Textiles) were

circulated on the occasion of Hindi Diwas

in the Ministry of Textiles as well as in its

Attached / Subordinate offices and PSUs

etc. for doing maximum work in Hindi.

22


annual report 2011-12

CHAPTER II

FUNCTIONS AND

ORGANIZATIONAL SET UP

23


24

ministry of textiles


annual report 2011-12

CHAPTER-II

FUNCTIONS AND ORGANIZATIONAL SET-UP

The Ministry of Textiles is responsible

for policy formulation, planning,

development, export promotion and

trade regulation of the Textiles Industry.

This includes all natural and manmade

cellulosic fibres that go into the making

of textiles, clothing, and handicrafts.

The Ministry maintains an interactive

website: www.ministryoftextiles.nic.in.

The Ministry is headed by a Secretary,

who is assisted in the discharge of duties

by four Joint Secretaries, an Economic

Advisor, the Development Commissioners

for Handlooms and Handicrafts, the

Textiles Commissioner and the Jute

Commissioner.

VISION

To build state of the art production

capacities and achieve a pre-eminent

global standing in manufacture and

export of all types of textiles including

technical textiles, jute, silk, cotton and

wool and develop a vibrant handlooms

and handicrafts sector for sustainable

economic development and promoting

and preserving the age old cultural

heritage in these sectors.

MISSION



To ensure welfare and proper working

environment and easy access to

health care facilities and insurance

cover to weavers and artisans to

achieve better quality of life.

To promote exports of all types of

textiles and clothing and handicrafts

and increase India’s share of world

exports in these sectors.

OBJECTIVES


To make available adequate raw

material to all sectors of the Textiles

Industry.

● To augment the production of

fabrics at reasonable prices from

the organised and decentralised

sectors.



To lay down guidelines for a planned

and harmonious growth of various

sectors with special emphasis on

the development of the handlooms

sector due to its large employment

potential.

To monitor the techno-economic

status of the industry and to provide

the requisite policy framework for

modernization and rehabilitation.




To promote planned and harmonious

growth of textiles by making available

adequate fibres to all sectors.

To promote technological upgradation

for all types of textiles including

technical textiles, jute, silk, cotton

and wool.

To promote skills of all textile workers,

handloom weavers and handicrafts

artisans, creation of new employment

opportunities and development of

new designs to make these sectors

economically sustainable.

FUNCTIONAL AREAS









The Textiles Policy & Coordination

Apparel Industry

The Man-made Fibre/Filament Yarn

Industry

The Cotton Textiles Industry

The Jute Industry

The Sericulture and Silk Textiles

Industry

The Wool & Woollen Textiles Industry

The Decentralized Powerlooms Sector

25


ministry of textiles








Export Promotion

International Trade

Handicrafts

Handlooms

Skill development Programme

The Planning & Economic Analysis

Budget & Finance matters

1. ATTACHED OFFICES

(i) The Office of the Development

Commissioner for Handlooms, New

Delhi

The Office is headed by the Development

Commissioner for Handlooms. It

administers various schemes for the

promotion and development of the

handlooms sector and supplements the

efforts of State Governments, Societies,

NGOs, etc. Its subordinate organisations

include Weavers’ Services Centres

(WSCs), the Indian Institutes of Handloom

Technology (IIHT) and the enforcement

machinery for the implementation of the

Handlooms (Reservation of Articles for

Production) Act, 1985.

(ii) The Office of the Development

Commissioner for Handicrafts, New

Delhi

The office is headed by the Development

Commissioner for Handicrafts. It administers

various schemes and functions to promote

the development and export of handicrafts,

and supplements the efforts of State

Governments by implementing various

developmental schemes. It has six regional

offices at Mumbai, Kolkata, Lucknow,

Chennai, Guwahati, and New Delhi.

2. SUBORDINATE OFFICES

(i)

Office of the Textiles Commissioner,

Mumbai

The office of the Textile Commissioner

(TXC) has its headquarters at Mumbai and

eight regional offices at Amritsar, Noida,

Kanpur, Kolkata, Bengluru, Coimbatore,

Navi Mumbai and Ahmedabad. The

Textiles Commissioner acts as the

principal technical advisor to the Ministry.

The Office of Textiles Commissioner

carries out techno-economic surveys

and advises the government on the

general economic health of the textiles

industry. The developmental activities of

the Office of the Textiles Commissioner

centre around planning for the growth and

development of the textiles sector. Of the

forty four Powerloom Service Centres

(PSCs) functioning throughout the country,

fourteen are functioning under the

administrative control of the Textiles

Commissioner. The office of TXC also

coordinates and provides guidance to

the remaining thirty Powerloom Service

Centres, being run by the various

Textiles Research Associations and

State Government Agencies. The Office

also implements and monitors various

developmental and promotional schemes

like the Technology Upgradation Fund

Scheme (TUFS) for the modernization of

the Textiles and Jute industry, the Textiles

Workers Rehabilitation Fund Scheme

(TWRFS).

(ii) Office of the Jute Commissioner,

Kolkata

This office is headed by the Jute

Commissioner and is entrusted with the

responsibility of implementing the policies

of the Government in the Jute sector. The

Jute Commissioner acts as the principal

technical adviser to the Government of

India, and gives technical advice to the

Ministry on matters relating to the jute

industry, including the jute machinery

industry.

3. ADVISORY BOARDS

(i)

All India Handicrafts Board

The All India Handicrafts Board is an

advisory body under the chairmanship

of the Minister of Textiles, with the

26


annual report 2011-12

Development Commissioner (Handicrafts)

as the Member Secretary. It gives its

advice to the Government on matters

pertaining to the development of the

handicrafts sector.

(ii) All India Powerlooms Board



The Chairman of the Board is Textile

Commissioner. It has 43 members

including its Chairman.

The term of the members of the Board

is upto 31.3.2012 or until further

orders, whichever is earlier.

The All India Powerlooms Board was

first constituted as an Advisory Board in

November, 1981 and since then Govt. of

India has reconstituted the AIPB from time

to time and has last reconstituted the AIPB

for a period of two years on 22.12.2011.

It has representatives of the Central and

State Govt., Powerloom Federation/

Associations of Powerloom Industry, as

its members and is headed by the Hon’ble

Union Minister of Textiles as the Chairman.

The functions of the Board include

advising the Government on matters

concerning growth and development of the

decentralized powerlooms sector.

(iii) All India Handlooms Board

The Board is an advisory body under

the chairmanship of Minister of Textiles,

with the Development Commissioner

(Handlooms) as the Member-Secretary.

The main function is to advise the

Government on various aspects of

development of the handlooms sector.

(iv) The Cotton Advisory Board

The Cotton Advisory Board is headed

by the Textiles Commissioner and is a

representative body of various interest

groups like Government agencies, Cotton

Growers, Textiles Industry, and Trade.

It advises the Government, generally,

on matters pertaining to the production,

consumption, and marketing of cotton,

and also provides a forum for liaison

among various stakeholders.

(v) Cotton Yarn Advisory Board


Cotton Yarn Advisory Board was

constituted vide Gazette notification

No. 9/4/2010-TUFS dated 12.7.2010.

Terms of Reference

● To monitor the domestic and

international prices of cotton yarn

and suggest measures for increasing

the availability of cotton yarn at

reasonable prices for domestic

consumption.



To advise the Government on matters

pertaining to production, consumption

and availability of different types of

cotton yarn at reasonable prices for

domestic consumption.

To monitor the import and export of

cotton yarn and prepare the cotton

yarn balance sheet.

(vi) Jute Advisory Board

The Jute Advisory Board headed by

the Jute Commissioner advises the

Government on matters pertaining to

jute falling within the purview of Jute

and Jute Textiles Control Order 2002,

including production estimates of jute

and mesta.

4. REGISTERED SOCIETIES

(i)

Central Wool Development Board

(CWDB), Jodhpur

The Central Wool Development Board

(CWDB), Jodhpur was constituted by the

Government of India, Ministry of Textiles

in 1987 under the Rajasthan Societies

Registration Act, 1958 to promote the

growth and overall development of wool

and the woolen textiles industry in the

country. The Board administers various

projects and programmes through the

State Governments and Non-Government

Organisations (NGOs). The Board was

27


ministry of textiles

reconstituted on November 22, 2010 for a

period of two years.

(ii) Sardar Vallabhbhai Patel International

School of Textiles & Management

(SVPISTM), Coimbatore.

SVPITSM was set-up on December 24,

2002, as a premier National level Institute

for Textiles Management at Coimbatore,

Tamil Nadu, to prepare the Indian textiles

industry to face the challenges of post-

Multi Fibre Agreement era and establish

it as a leader in the global textiles trade.

The Board of the institute consists of

nineteen members and a Chairman

including representative of the Industry

and eminent personalities from the field

of academics, was reconstituted on April

12, 2010, for a period of three years.

5. STATUTORY BODIES

(i) National Jute Board

The National Jute Board is the apex

organisation for coordinating and

synergising the functions of all jute related

Organisations and a focal point for all jute

related activities. The National Jute Board

is also responsible for implementation

of the Jute Technology Mission in a

centralized and coordinated manner and

helps in speedily resolving the ills of Jute

Industry in the matters of diversification

and marketing of Jute Products as well

as modernisation of Jute Mills. National

Jute Board have a membership of 34

persons, of which 15 will be Government

representatives from Central Government

and State Governments having stake in

production and promotion of Jute Products

and 19 Members from private jute

related sector i.e. jute farmers, growers,

research association, small and medium

enterprises as well as here Members

of Parliament. The Headquarters of the

National Jute Board is in Kolkata, with

regional representations in Jute growing

areas and in other areas for marketing of

the jute products.

(ii) The Central Silk Board (CSB),

Bangalore

The Central Silk Board is a statutory

body, and it was constituted by an Act of

Parliament (LXI of 1948), with the objective

of promoting the growth and development

of Sericulture in the country. These

programmes are primarily formulated and

implemented by the State Sericulture/

Textiles Departments. However, the Central

Silk Board supplements the efforts of the

States by providing necessary support for

research and development, and extension

and training through its countrywide

network of centres. Besides, the Central

Silk Board organises the production and

supply of quality silkworm seeds, Mulberry

cuttings, etc., and also implements various

Sericulture projects of the Government of

India directly, as well as, jointly with the

State sericulture Departments. The Board

constitutes of 39 members including a

chairman & ex-officio vice chairman and 2

permanent invitees.

(iii) Textiles Committee, Mumbai

The Textiles Committee was established

on July, 1964 under the Textiles

Committee Act, 1963, with the objective

of ensuring the quality of textiles from

both the internal and export markets. Its

functions include the promotion of textiles,

textiles exports, research in technical and

economic fields, establishing standards

for textiles and textiles machinery, setting

up of laboratories, and data collection

located throughout the country. The

Textiles Committee, in addition to its

headquarters at Mumbai, has thirty

Offices to assist the industry and trade

in testing their products. The Committee

has the following functional divisions at

its Headquarters in Mumbai : (1) Textiles

28


annual report 2011-12

Inspectorate Wing (2) Textiles Laboratory

Wing (3) Market Research Wing (4) ISO

Wing (5) Vigilance Cell (6) Accounts Wing,

and (7) Administration and Coordination

Wing.

(iv) Commissioner of Payments (COP),

New Delhi

The Office of Commissioner of Payments

with its headquarters at Delhi, is a statutory

authority, set up under Section 17(1) of the

Sick Textiles Undertakings (Nationalisation)

Act, 1974, Section 15(1) of the Swadeshi

Cotton Mills Company Ltd. (Acquisition

and Transfer of Undertakings) Act, 1986,

and also under Section 17(1) of the Textiles

Undertakings (Nationalisation) Act, 1995.

The Commissioner of Payments disburses

the amount placed at his disposal to

the owners of each textiles undertaking

nationalized by the aforesaid three Acts.

(v) The National Institute of Fashion

Technology (NIFT), New Delhi

The National Institute of Fashion

Technology was set up in 1986 as an

autonomous Society in collaboration

with the Fashion Institute of Technology

(FIT), New York, to prepare and train

professionals to meet the requirements

of the textiles industry. The Government

brought into force the National Institute of

Fashion Technology Act, 2006 on July 14,

2006. This Act provides statutory status

to the Institute, and formally recognizes

its leadership in the fashion technology

sector. The Act empowers NIFT to

award degrees to its students from 2007

onwards. The President of India is the

Visitor of the Institute. The Institute has

pioneered the evolution of the fashion

business education across the country

through centres at New Delhi, Bangaluru,

Chennai, Gandhinagar, Hyderabad,

Kolkata, Mumbai, Kannur, Patna, Shillong,

Kangra, Bhopal, Rae Bareli, Bhubneswar

and Jodhpur.

6. THE RIGHT TO INFORMATION

ACT, 2005

To promote openness, transparency

and accountability in administration

and provide the right to every citizen to

secure access to information under the

control of Public Authorities, the Right to

Information Act has come into effect for

implementation w.e.f. October 12, 2005.

The Act marks the beginning of a new

era in the approach of the Government

where openness shall now be the rule

and secrecy an exception. Every Citizen

can obtain the information they desire

by submission of an application and by

paying a nominal charge as an application

fee, to the Central Public Information

Officer designated by the public authority

for the purpose under the Act. This Ministry

has designated officers as Central Public

Information Officers (CPIOs) and Appellate

Authorities. The Ministry of Textiles, as well

as, its Attached & Subordinate Offices,

Autonomous & Statutory Bodies and Public

Sector Undertakings have completed

the action for setting up of the necessary

infrastructure for implementation of the

Act. Ministry monitors the implementation

of the Act by the organizations under the

Ministry of Textiles.

7. PUBLIC GRIEVANCE REDRESSAL

MACHINERY IN THE MINISTRY

The Department of Administrative Reforms

and Public Grievances issues instructions

and guidelines to establish, activate,

and strengthen the Centralized Public

Grievances Redressal and Monitoring

System (CPGRAMS) in the Ministries,

Departments, and other Organisations of

the Government of India. In pursuance

of these instructions/guidelines, online

CPGRAMS has been introduced in the

Ministry. Similar arrangements are also

being made in each of the attached/

subordinate offices of the Ministry of

Textiles. A Grievance Committee under

the Chairmanship of a Joint Secretary has

29


een formed to monitor the functioning of

CPGRAMS in the Ministry, as well as in

attached and subordinate organizations.

If need be, the files relating to pending

grievances are called and cases are settled

by the Committee in its meetings. The

Ministry has taken, the following steps to

strengthen the CPGRAMS





Time Norms for the disposal of

grievance cases have been fixed,

and the same have been circulated

and displayed at prominent places of

the building:

Acknowledgement to complainant

within seven days;

Final disposal within two months.

Publicity about the CPGRAMS in the

media.





ministry of textiles

The Citizens Charter has been

formulated and hosted on the

Website.

Details about the CPGRAMS have

also been placed on the Website of

the Ministry (texmin.nic.in).

An Information & Facilitation Counter

has been established at Gate No.14,

Udyog Bhawan, New Delhi, to make

information readily available to the

public.

A complaint box has been kept at the

Information & Facilitation Counter.

The list of Officers handling Public/

Staff Grievances in the Ministry of

Textiles and its Attached/Subordinate

Offices is available at the website of

the Ministry.

Table 2.1

List of Officers handling public/staff grievance in the Ministry of Textiles and its

Attached/Subordinate Offices

Sl.

No.

Offices

Public /Staff

Grievances Officers

1. Ministry of Textiles Ms. Sunaina Tomar

Joint Secretary

(Public Grievances)

2. Development

Commissioner

(Handicraft)

3. Development

Commissioner

(Handloom)

4. Office of Textile

Commissioner, Mumbai

5. Office of Jute

Commissioner, Kolkata

Shri S.S. Gupta,

Development

Commissioner

(Handicraft).

Ms.Meenu Satish

Kumar

Addl.Development

Commissioner

(Handloom)

Shri S. Balaraju,

Joint Textile

Commissioner(P)

Ms. Arti Kanwar,

Deputy Jute

Commissioner

Address & Telephone

Room No. 271 , Udyog Bhawan, New Delhi

Tel: 23061826,

e-mail: sunaina.tomar@nic.in

West block-7, R.K.Puram, New Delhi-110066

Tel- 011-6106902, 6103562

Fax:6163085

e-mail: ssgupta234@yahoo.com

Office of DC (Handloom)

Udyog Bhawan, New Delhi 110011

Tel- 011 23061976

Fax: 23063511

e-mail: meenu.sk@nic.in

New C.G.O. Building,

48, New Marine Lines,

Mumbai-400 020.

e-mail: textilec@ gmail.com

2203 4134/22014554

C.G.O. Complex, 3 rd MSO Building, 4 th Floor, DF

Block, Salt Lake City, Kolkata – 700064.

Tel:+91(33)23376979 / 80 Fax:+91(33)23376972 /

6973 / 6974

e-mail: jccal@vsnl.com

Website: www.jutecomm.gov.in

30


annual report 2011-12

Table 2.2

LIST OF ORGANISATIONS UNDER THE MINISTRY OF TEXTILES

(EXCEPT ATTACHED/SUBORDINATE OFFICES)

Public sector

Undertakings

Textiles Research

Associations

Advisory

Body

Registered

Society

Statutory Bodies

1. Birds Jute Export

Ltd. (BJEL), Kolkata

1. Ahmedabad Textiles

Industry’s Research

Association (ATIRA),

Ahmedabad

1. All India

Handloom

Board

1. Central Wool

Development

Board (CWDB),

Jodhpur

1. Central Silk

Board (CSB),

Bangalore

2. British India

Corporation(BIC)

2. Bombay Textiles

Research Association

(BTRA), Mumbai

2. All India

Handicrafts

Board

2. Sardar

Vallabhbhai Patel

International

School of Textiles

& Management

(SVPISTM),

Coimbatore

2. Commossioner

of Payments,

(COP) New Delhi

3. Central Cottage

Industries

Corporation of India

Ltd. (CCIC), New

Delhi

3. Indian Jute

Industries Research

Association (IJIRA),

Kolkata

3. All India

Powerloom

Board

3. National Jute

Board, Kolkata.

4. The Cotton

Corporation of India

Ltd. (CCI), Mumbai

4. Man-Made Textiles

Research Association

(MANTRA), Surat

4. Coordination

council for

Textiles

Research

Associations

4. Textile

Committee,

Mumbai

5. The Handicrafts &

Handlooms Exports

Corporation of India

Ltd.(HHEC), New

Delhi

5. Northern India

Textile Research

Association (NITRA),

Gaziabad

5. Cotton

Advisory

Board

5. National

Institute of Fashion

Technology (NIFT),

New Delhi

6. The Jute

Corporation of

India Limited (JCI),

Kolkata

6. South India

Textiles Research

Association(SITRA),

Coimbatore

6. Jute

Advisory

Board

7. National

Handloom

Development

Corporation(NHDC),

Lucknow

7. Synthetic and Art

Silk Mills Research

Association(SASMIRA)

8. National Jute

Manufactures

Corporation(NJMC),

Kolkata

8. Wool Research

Association(WRA),

Thane

9. National Textiles

Corporation Ltd.

(NTC), New Delhi

31


ministry of textiles

There are 11 (Eleven) Textiles Export

Promotion Councils representing various

Section of the Textiles & Clothing industry

which function in association with various

Ministries and Departments to promote

exports of their sectoral products and

enhance trade in the global market.

The Textiles Export promotion Councils

are:

1. Apparel Export Promotion Council

(AEPC), New Delhi

2. Carpet Export Promotion Council

(CEPC), New Delhi

3. Cotton Textiles Export Promotion

Council (TEXPROCIL), Mumbai

4. Export Promotion Council for

Handicrafts (EPCH), New Delhi

5. Handlooms Export Promotion Council

(HEPC), Chennai

6. Indian Silk Export Promotion Council

(ISEPC), Mumbai

7. Powerlooms Development & Export

Promotion Council (PDEXCIL),

Mumbai

8. Synthetic and Rayon Textiles Export

Promotion Council (SRTEPC),

Mumbai

9. Wool and Woolen Export Promotion

Council (WWEPC), New Delhi

10. Wool Industry Export Promotion

Council (WOOLTEXPRO), Mumbai

11. Jute Products Development & Export

Promotion Council (JPDEPC).

******

32


annual report 2011-12

CHAPTER III

THE ORGANIZED TEXTILES

MILL INDUSTRY

33


34

ministry of textiles


annual report 2011-12

CHAPTER III

THE ORGANIZED TEXTILES MILL INDUSTRY

The Cotton / Man-made fibre textile

industry is the largest organized

industry in the country in terms of

employment (nearly 1 million workers) and

number of units. Besides, there are a large

number of subsidiary industries dependent

on this sector, such as those manufacturing

machinery, accessories, stores, ancillaries,

dyes & chemicals. As on 30.11.2011,

there were 1946 cotton/man-made fibre

textile mills (non-SSI) in the country with an

installed capacity of 43.13 million spindles

5,20,000 rotors and 52,000 looms.

Textile production covering man-made

fibre, man-made filament yarn and

cotton yarn is showing a decreasing

trend. Blended and 100% non cotton

yarn production recorded an increase

of 5.2% during 2011-12 (April – October

2011). The production of spun yarn

during April-Oct. (2011-12) has shown

a decrease of 8.1%. The production

of cotton yarn during 2011-12 (April-

Oct.) recorded a decrease of 12.7%

(Provisional).

Cloth production by mill sector showed

marginal increase of 4.6% during

April-Oct. (2011-12) (provisional). During

the same period cloth production by

power loom and hosiery sector showed a

decrease of 4.4% and 17.8% respectively.

However the cloth production in handloom

sector showed an increase of 3%.

CAPACITY

There were 1946 cotton/man-made fibre

textile mills (non-SSI) in the country with

an installed capacity of 43.13 million

spindles 5,20,000 rotors and 52,000

looms as on 30.11.2011.

CAPACITY UTILISATION IN THE

MILL SECTOR

The capacity utilization in the spinning

sector of the organized textile mill industry

ranged between 80 to 90 % while the

capacity utilization in the weaving sector of

the organized textile mill industry ranged

between 41 to 62 %.

PRODUCTION OF SPUN YARN

The contribution from the SSI sector has

been about 10% in the total spun yarn

production. A statement showing the

production of spun yarn (including SSI

units) during the last few years is given at

table 3.1.

Table 3.1

Year Cotton Yarn Blended Yarn and 100% noncotton

Total Spun Yarn

yarn

2005-06 2521 937 3458

2006-07 2824 989 3813

2007-08 2948 1055 4003

2008-09 2896 1016 3912

2009-10 3079 1114 4193

2010-11 3490 1223 4713

2011-12 (April-Oct 11) 1785 730 2515

P-provisional

35


ministry of textiles

SICKNESS/CLOSURE OF TEXTILE

MILLS

The incidence of sickness and closure in

the organized textiles industry is a matter

of concern. Textiles being the oldest and

the largest industry of the country, it is

but natural that at any given point of time

some textiles units could be lying sick /

closed. One main reason of sickness

is structural transformation resulting in

the composite units in the organized

sector losing ground to power looms in

the decentralised sector, on account of

the latter’s greater cost effectiveness.

Other causes of sickness/ closure of

the industry include low productivity due

to lack of modernisation, stagnation in

demand and inability of some units to

expand in the export market, increase in

the cost of inputs, difficulties in getting

timely and adequate working capital and

the availability of power, labour disputes,

excess capacity, failure to diversify in

emerging areas, poor management, etc.

The details of closure of cotton/man-made

fibre textile mills is given at table 3.2.

PRODUCTION OF CLOTH &

EMPLOYMENT GENERATION

The weaving capacity in the organized

sector, along with the number of composite

textile mills, however, has stagnated,

because the past Government policy

permitted only marginal expansion in

weaving capacity in the organized mill

sector. Even after the removal of restrictions

in the Textile Policy of 1985, weaving

capacity has been consistently declining.

This is attributable to the structural

transformation in the industry, leading to

the de-linking of weaving from spinning

and the emergence of the decentralized

powerloom sector. In the organized sector

the loom age capacity has declined from

1.23 lakh in March, 2000 to 0.86 lakh in

March, 2005, and to 0.56 lakh in March

2008 and the same further declined to 0.52

lakh in 2011.

Over the years, production of cloth in the

mill sector is showing a steady growth

since 2003-04 onwards and was 2016

million sq. meter in 2009-10. The total

production of cloth by all sectors i.e. mill,

powerloom, handloom, hosiery and khadi,

wool and silk has shown an upward trend

in recent years. The Cloth production

in 2010-11 is 59525 mn. sq. mtrs.

(Provisional). The cloth production during

April-Oct (2011-12) showed a decrease

by 6.5% (provisional).

The production of cloth in different sectors

of textiles is given at table 3.3.

Table 3.2

Year No. of Spinning Mills No .of composite Mills Total

2001-02 295 126 421

2002-03 349 134 483

2003-04 374 94 468

2004-05 376 99 475

2005-06 387 96 483

2006-07 380 87 467

2007-08 318 63 381

2008-09 339 64 403

2009-10 365 68 433

2010-11 471 82 552

2011-12

(As on 31.8.2011)

470 85 555

36


annual report 2011-12

MILL SECTOR

Table 3.3.

PRODUCTION OF CLOTH IN DIFFERENT SECTORS

Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

(P)

(in million sqmeter)

2011-12

(April-Oct)

Cotton 1072 1192 1305 1249 1259 1465 1604 986

Blended 243 252 330 422 426 482 526 310

100% Non Cotton 211 212 111 110 111 69 75 42

Total 1526 1656 1746 1781 1796 2016 2205 1339

HANDLOOMS SECTOR

Cotton 4792 5236 5717 6076 5840 5857 6016 3548

Blended 146 145 99 123 118 137 143 74

100% Non Cotton 784 727 720 748 719 812 790 446

Total 5722 6108 6536 6947 6677 6806 6949 4068

DECENTRALISED POWERLOOMS SECTOR

Cotton 7361 8821 9647 9923 9621 10128 11852 6729

Blended 4526 4632 5025 4918 4764 5487 5853 3554

100% Non Cotton 16438 17173 18207 19884 19263 21382 20224 11172

Total 28325 30626 32879 34725 33648 36997 37929 21454

DECENTRALISED HOSIERY SECTOR

Cotton 7430 8624 9569 9948 10178 11464 12270 5952

Blended 1117 1269 1428 1425 1458 1661 1756 897

100% Non Cotton 565 525

507

431

441

577 620 383

Total 9112 10418 11504 11804 12077 13702 14646 7232

ALL SECTORS

Cotton 20655 23873 26238 27196 26898 28914 31742 17214

Blended 6032 6298 6882 6888 6766 7767 8278 4836

100% Non Cotton 17998 18637 19545 21173 20534 22840 21710 12044

Total 44685 48808 52665 55257 54198 59521 61730 34094

Khadi, Wool & Silk 693 769 724 768 768 812 812 476

Grand Total 45378 49577 53389 56025 54966 60333 62542 34570

P = Provisional

37


ministry of textiles

The employment generation in cotton/

man-made fibre /Yarn Textile Mill Sector

(including SSI spinning and excluding

weaving units) textile industry projected

for the terminal year of the 11 th plan is

1.40 million numbers.

TECHNOLOGY UPGRADATION

FUND SCHEME (TUFS)

The Technology Upgradation Fund

Scheme (TUFS) was launched on 01.04

1999, for a period of five years, and was

subsequently extended upto March 31,

2007. The Scheme provides for interest

reimbursement/capital subsidy/Margin

Money subsidy and has been devised

to bridge the gap between the cost of

interest and the capital component to

ease up the working capital requirement

and to reduce the transaction cost, etc.

The Scheme is an important tool to infuse

financial support to the textiles industry

and help it capitalize on the vibrant and

expanding global and domestic markets,

through technology upgradation, cost

effectiveness, quality production,

efficiency and global competitiveness.

During its initial years, the progress of

the Scheme was moderate and it gained

momentum from 2004-05 onwards. The

Scheme has been further extended

till 2012 with modified financial and

operational parameters which focus

on additional capacity building, better

adoption of technology, and provides for

a higher level of assistance to segments

that have a larger potential for growth,

like garmenting, technical textiles, and

processing. The scheme is administered

through 3 nodal agencies, 36 nodal banks

and 108 co-opted PLIs. The scheme

since inception has propelled investment

of more than Rs. 2,10,000 crores. An

amount of Rs. 13637.53 crore has been

released towards subsidy under the

Scheme as on 31.10.2011.

With effect from 28.04.2011, Restructured

TUFS has been approved with the

enhanced 11 th Plan allocation under TUFS

from Rs. 8000 crore to Rs. 15404 crore.

The Restructured TUFS ensure focus of

interventions on hitherto slow growing

sectors like weaving, encouragement

to forward integration and tighter

administrative controls and monitoring of

the scheme. The Restructured TUFS is

expected to trigger additional investments

of over Rs. 46,900 crore during the

balance period of the XI th Five Year Plan.

Progress of TUFS

The progress of TUFS is steadily going

up which is evident from the data given

at table 3.4.

Progress of (20% CLCS)

20% Credit Linked Capital Subsidy

Scheme under CLCS-TUFS for power

loom units had been launched on 6 th

November 2003. Under the scheme,

Rs. 223.27 crores has been disbursed

to 3033 cases as on 30.11.2011 as per

details given at table 3.5.

SCHEME FOR INTEGRATED

TEXTILE PARKS (SITP)

Scheme for Integrated Textiles Parks

was approved in the 10th Five Year Plan

to provide the industry with world-class

infrastructure facilities for setting up their

textile units by merging the erstwhile

‘Apparel Parks for Exports Scheme

(APES)’ and ‘Textile Centre Infrastructure

Development Scheme (TCIDS)’.

Scope of the Scheme

The scheme targets industrial clusters/

locations with high growth potential,

which require strategic interventions

by way of providing world-class

infrastructure support. The project cost

covers the cost of common infrastructure

38


annual report 2011-12

Table 3.4

Period Received Sanctioned Disbursed

No. of

applications

Project

Cost

No. of

applications

Project

Cost

Amount

No. of

applications

(Rs. in crore)

Amount

Subsidy

1999-2000 407 5771 309 5074 2421 179 746 1

2000-2001 719 6296 616 4380 2090 494 1863 70

2001-2002 472 1900 444 1320 630 401 804 198.89

2002-2003 494 1835 456 1438 839 411 931 202.59

2003-2004 867 3356 884 3289 1341 814 856 249.06

2004-2005 986 7941 986 7349 2990 801 1757 283.60

2005-2006 1086 16194 1078 15032 6776 993 3962 485

2006-2007 12336 61063 12589 66233 29073 13168 26605 823.92

2007-2008 2408 21254 2260 19917 8058 2207 6854 1143.37

2008-2009

6113 56542 6072 55707 24007 6111 21826 2632.00

(P)

2009-2010 2384 28005 2352 27611 6612 2361 8140 2886

2010-11 (Upto

June 2010) P)

As on

30.06.2010(P)

256 397 256 397 254 240 282 2784.18

28528 210554 28302 207747 85091 28180 74627 11759.61

Sr.

No

Year

Table 3.5

No. of units

Amount of subsidy released

(Rs. in crore)

1 2003- 2004 004 00.10

2 2004-2005 150 06.00

3 2005-2006 368 23.00

4 2006-2007 958 68.89

5. 2007-2008 436 35.92

6 2008-2009 404 32.48

7 2009-2010 363 30.57

8 2010-11 233 17.72

9 2011-12

(As on 30.11.2011)

117 8.59

TOTAL 3033 223.27

and buildings for production/support

activities, depending on the needs of the

ITP. There will be flexibility in setting up

ITPs to suit the local requirements.

This scheme is implemented through

Special Purpose Vehicles (SPVs),

where Industry Associations/Group of

Entrepreneurs are the main promoters

39


ministry of textiles

of the Integrated Textile Park (ITP). At

each ITP, there would be a separate

Special Purpose Vehicle (SPV) formed

with the representatives of local Industry,

Financial Institutions, State and Central

Government. SPV shall invariably be

a Corporate Body registered under the

Companies Act. Any different structure

for the SPV requires the approval of the

Project Approval Committee. The SPVs

shall have operational autonomy so that

they do not become surrogate Public

Sector Enterprises or be controlled by

Central/State Governments.

The components of an ITP are broadly

divided in the following groups:-

(a) Group A - Land.

(b) Group B – Common Infrastructure

like compound wall, roads,

drainage, water supply, electricity

supply including captive power

plant, effluent treatment plant, and

telecommunication lines etc.

(c) Group C – Buildings for common

facilities like testing laboratory, design

center, training center, trade center/

display center, ware housing facility/

raw material depot, crèche, canteen,

workers hostel, offices of service

providers, labour rest and recreation

facilities etc.

(d) Group D – Factory buildings for

production purposes.

(e) Group E- Plant & machinery.

The total Project Cost for the purpose of

this Scheme includes the cost on account

of components of ITP, as listed under

Groups A, B, C and D above, provided the

ownership of the factory buildings vests

with the SPV. The SPV will, however, have

the option of seeking financial support

from Government of India for components

under Groups B and C only, if factory

buildings are individually owned.

A panel of professional agencies has

been appointed as Project Management

Consultants (PMCs) for implementing the

Scheme.

The PMCs will be responsible for the

speedy implementation of the Projects in

a transparent and professional manner

so as to achieve high degree of quality at

a low cost acceptable to the members of

the SPV for which fee will be paid to the

PMCs by the Ministry of Textiles.

The PMCs will report to Ministry of

Textiles, which shall directly supervise

the implementation of projects under

the superintendence and control

of Secretary (Textiles). The project

proposal as submitted by PMCs shall be

considered and appraised by the Project

Scrutiny Committee (PSC) headed by

JS (SITP), Ministry of Textiles. Project

Scrutiny Committee will appraise all

the proposal submitted by PMCs in

terms of the project components,

viability, feasibility and time lines of

each project. The Committee shall look

into the utility of the projects in terms

of modernization & integration of supply

and management chain, and make

the final recommendations to Project

Approval Committee (PAC). The Project

Approval Committee will consider and

approve the recommendations of Project

Scrutiny Committee headed by Minister

of Textiles with Secretary (Textiles), and

JS, Ministry of Textiles in charge of SITP

as members.

Funding Pattern

The Government of India’s (GOI) support

under the Scheme by way of Grant or

Equity will be limited to 40% of the project

40


annual report 2011-12

cost subject to a ceiling of Rs. 40 crore.

GOI support under the Scheme will be

generally in the form of grant to the SPV

unless specifically decided to be equity.

However, the combined equity stake of

GOI/State Government/State Industrial

Development Corporation, if any, should

not exceed 49%.


One project of Kanpur – Uttar Pradesh

nearing completion (Training centre

component yet to be completed)

Scheme for Integrated Textile Parks

(SITP):


As per the target, forty (40) Textiles

Park projects have been sanctioned.

However, GOI support will be provided

@ 90% of the project cost subject to a

ceiling of Rs. 40 crore for first two projects

in the States of Arunachal Pradesh,

Assam, Manipur, Meghalaya, Mizoram,

Nagaland, Tripura, Sikkim and Jammu &

Kashmir.

Status of Implementation

TEXTILE CENTRE INFRASTRUCTURE

DEVELOPMENT SCHEME (TCIDS):



18 Projects sanctioned

GOI Share Rs.268.86 crores.




Estimated project cost (for common

infrastructure and common facilities)

of the 40 sanctioned projects is Rs.

4133.09 Crore, of which Government

of India assistance under the scheme

would be Rs. 1419.69 Crore.

An amount of Rs. 992.43 Crore has

been released under SITP.

2292 entrepreneurs will put up their

units in these parks covering an

area of 4307.97 Acre. The estimated

investment in these parks will be Rs.

19456.90 Crore and estimated annual

production will be Rs. 33568.50

Crore.




Released Rs.210.59 crores

Four Projects completed, Kannur-

Kerala, Bhiwandi-Maharashtra, and

Tirupur- Tamil Nadu, Pandesara-

Surat.

One project nearing completion i.e.

SEWA-Gujarat

APPAREL PARKS FOR EXPORTS

SCHEME (APES)





12 Projects sanctioned

GOI Share Rs.185.22 crores.

Released Rs.130.85 crores

Four Projects completed – Bangalore-

Karnataka, Thiruvananthapuram-

Kerala, TIrupur-Tamil Nadu, and

Tronica City-Uttar Pradesh

● Andhra Pradesh (5), Gujarat (7),

Maharashtra (9), Tamil Nadu (8),

Rajasthan (5), Karnataka (1), Punjab

(3), West Bengal (1), Madhya

Pradesh (1).

● Seven projects have been

completed–Brandix & Pochampally-

Andhra Pradesh, Gujarat Eco Textile

Park &Mundra – Gujarat, Palladam

Hi-Tech Weaving Park, Karur – Tamil

Nadu and Islampur Integrated Textile

Park, Maharashtra. Production has

been started in 24 out of 40 projects.

Future Programme

Considering the overwhelming response

to the scheme and opportunities for

growth of the textiles industry and in

view of the consistent requests from

State Governments, industry groups

41


ministry of textiles

and entrepreneurs for setting up of new

textile parks, a note was submitted by the

Ministry of Textiles for consideration of the

Cabinet Committee on Economic Affairs for

approval of more Textile Parks. The CCEA

has approved the proposal for sanction of

additional parks under SITP to utilize the

balance Rs. 200 Crore in the 11th Five Year

Plan and number of projects be limited in

such a way that committed liability of the

new parks does not exceed Rs. 200 Crore

in the 12th Five Year Plan. The CCEA

also approved the revised guidelines

enabling a two tier scrutiny and approval

mechanism. The proposals received

for new parks have been examined by

the Project Scrutiny Committee (PSC)

comprising representatives from Ministry

of Finance, Planning Commission, Ministry

of Commerce & Industry, and Ministry of

Environment & Forest. After examination by

PSC, 21 new Textile Park proposals have

been approved by the Project Approval

Committee under the Chairmanship of

Minister of Textiles with Secretary (T) and

JS concerned as members.

HANK YARN OBLIGATION SCHEME

The Hank Yarn Obligation (HYO) is a

statutory obligation which enjoins upon

spinning mills to pack yarn in hank form.

This Scheme is meant for protection of

the handloom industry by way of ensuring

that the yarn in hank form is available in

adequate quantity at reasonable prices

to the handloom industry. Failure to

comply with this obligation invites lodging

of FIR against the defaulting mills by the

Office of the Textile Commissioner. The

current level of obligation is 40% of the

total yarn packed by the mills for civil

consumption. The obligation has to be

fulfilled in quarterly periods commencing

from January-March. The Scheme also

provides that shortfall in fulfillment of the

obligation may be met by transferring of

the obligation to another mill which has

excess production of hank yarn in addition

to fulfilling its own obligation. Normally,

mills accept such transfer on premium.

With the strict enforcement of the

provisions of the Hank Yarn Packing

Notification by the Office of the Textile

Commissioner, Mumbai, it is ensured that

actual packing of Hank Yarn is sufficient

to meet the total domestic requirement

of hank yarn in the country. The details

of Hank Yarn Packing Obligation and its

fulfillment by actual packing for the last

five years are given at table 3.6.

TEXTILE WORKERS’ REHABILITATION

FUND SCHEME (TWRFS)

The Textile Workers’ Rehabilitation Fund

Scheme came into force with effect from

15.09.1986 with the objective to provide

interim relief to textile workers rendered

unemployed as a consequence of

permanent closure of any particular portion

or entire textile unit. Assistance under

the Scheme is payable to eligible workers

only for the purpose of enabling them

to settle in another employment. Such

assistance is not heritable, transferable

or capable of being attached on account

of any other liabilities of the worker. The

worker’s eligibility shall cease if he takes

up employment in another registered or

licensed undertaking. The rehabilitation

assistance will not be curtailed if the

worker fixes himself in a self-employment

venture.

Closed Textile Unit

For the purpose of this scheme, closed

textile unit means:

(i)

a unit licensed or registered under

the Industries (Development &

Regulation) Act, 1951 or with the

Textile Commissioner as a medium

scale unit on the day of its closure;

(ii) it has obtained the requisite permission

42


annual report 2011-12

Sr.

No.

Year

No. of Units

submitted

the returns

Table 3.6

Fulfillment of Hank Yarn

Obligation (HYO)

HYO

Fulfillment of

HYO (on actual

packing basis)

Shortfall

(-)/Excess (+)

in fulfillment

of HYO

Percentage

of fulfillment

of HYO

1 2004-05 2151 383.58 408.89 (+)25.31 106.60%

2 2005-06 1942 451.84 441.94 (-)9.9 97.81%

3 2006-07 2022 484.67 485.03 (+)0.63 100.13%

4 2007-08 2099 516.03 527.37 (+)11.07 102.14%

5 2008-09 2114 492.51 524.00 (+)31.49 106.39%

6 2009-10 2090 525.78 534.74 (+)8.96 101.70%

7 2010-11 2126 567.44 559.85 (-)7.59 98.67%

8 2011-12

(April to Sept

2011)

2117 252.21 268.62 (+)16.41 106.51%

for closure from the appropriate State

Government under section 25(O) of

the Industrial Disputes Act, 1947 or

alternatively an Official Liquidator

was appointed under Companies Act,

1956, for the purpose of winding up of

the unit.

(iii) The unit was closed down on or after

06.06.1985.

(iv) This also includes partially closed

units wherein the State Governments

recommend that an entire uneconomic

activity (like weaving or processing)

is scrapped as a part of rehabilitation

package for a sick/weak mill (as per

the RBI definition) approved by the

Nodal Agency/BIFR provided the

scrapped capacity is surrendered for

cancellation and endorsement is made

on the License / Registration certificate

to this effect.

Eligibility

Any worker would be eligible provided he/

she has been engaged in a closed textile

unit on the date of its closure continuously

for five years or more and earning a wage

equivalent of Rs. 2500 per month or less

for the mills closed between 06.06.1985

to 01.04.1993 and Rs.3500 or less

thereafter. They should be contributing

to provident fund maintained by the

Regional Provident Fund Commissioner

of the State concerned.

Period and Quantum of Relief

Relief under the Scheme is available

only for three years on a tapering basis

but will not extend beyond the date of

superannuation of any worker. The

worker is entitled to get relief:




to the extent of 75% of the wage

equivalent in the first year of the

closure of the unit;

to the extent of 50% of the wage

equivalent in the second year; and

to the extent of 25% of the wage

equivalent in the third year.

43


ministry of textiles

Operation of the Scheme

The office of the Textile Commissioner,

Mumbai administers the scheme, through

its Regional offices and in coordination

with State Government, Official Liquidator,

Provident Fund Authorities, concerned

designated Trade Union and designated

Banks. The State Government will collect

the details of the workers etc. from the

management/official Liquidator/provident

fund authority etc. and prepare a list of

eligible workers and forward the same

to the concerned Regional Office of the

Textile Commissioner in the prescribed

Proforma. Regional Office of the Textile

Commissioner scrutinizes the list and

the list of eligible workers with eligible

relief is sent to State Government and

designated trade union, besides keeping

on a notice board.

The individual eligible workers are

required to open a separate Savings Bank

Account in the designated nationalized

Bank and forward a certificate to the

effect along with his relief claiming

application to the Regional office of

the Textile Commissioner through

the State Government. In the mean

time the Regional office of the Textile

Commissioner examines the proposals

and assesses the fund requirement and

reports to the Head quarter Office of the

Textile Commissioner for releasing fund.

On receipt of fund allocation, necessary

fund is allotted to the Regional Office in the

form of Letter of Credit opened by the Pay

& Accounts Officer (Textiles), Mumbai.

On receipt of funds, Regional Office of

the Textile Commissioner disburses the

relief by sending a consolidated cheque

in favour of the designated Bank along

with the list of eligible workers and the

amount of relief to be paid to each of the

eligible workers.

Progress

Till 30.11.2011, 1,12,868 workers out of

1,43,532 workers on the rolls of 86 mills

had been disbursed relief of `300.94

crore. The State-wise cumulative position

is given at table 3.7.

S.

No

State

No. of mills

identified

Table 3.7.

No. of

workers on

roll

No. of workers benefited

(as on 30.11.2011)

No. of

mills

Workers

received relief

Disbursed

amount

(` in crores)

1 2 3 4 5a 5b 6

1. Gujarat 43 80749 43 63649 159.63

2. Maharashtra 6 9958 6 7893 23.21

3. Madhya Pradesh 5 19800 5 18857 52.64

4. Tamil Nadu 6 5685 6 4761 7.45

5. Karnataka 10 10020 10 6025 22.00

6. Delhi 1 5187 1 5170 11.93

7. West Bengal 3 2072 3 2042 5.34

8 Kerala 1 500 1 437 2.47

9. Punjab 4 6685 4 2311 8.96

10. Andhra Pradesh 7 2876 6 1723 7.31

Total 86 143532 84 112868 300.94

44


annual report 2011-12

PROCESSING SECTOR

The textile-processing segment of the

Indian textile industry is highly fragmented

and can be broadly divided into four

segments:

(i)

Hand processing units.

(ii) Hand processing units with certain

exempted power processes.

(iii) Independent power processing

units.

(iv) Processing facilities attached to

composite or semi-composite mills.

Government has identified processing as

a critical segment. The National Textile

Policy envisages:


Setting up of modern processing units,

which would meet the international

quality and environmental norms.

● Expansion of the network of CAD /

CAM, computerized color matching

and testing facilities, particularly in

the clusters of the decentralized

textile centers.

● Extending necessary support to

individual units in achieving ISO

9000 (quality) and ISO - 14000

(environment) standards


Giving a thrust to development of

eco-friendly dyes, including natural

and vegetable dyes and on energy

conservation.

Globally the environmental issues are

increasingly dominating the textile

processing industry. In view of this, and

as per mandate of National Textile Policy,

the important steps taken by Government

to boost the high-tech investment in

processing sector include:

(i) Technology Upgradation Fund

Scheme launched by Government

of India on 01.04.1999, envisages

boosting investment in high-tech

processing units, by providing 5%

interest reimbursement on TUF loans.

The scheme has been extended for

11 th five year plan.

(ii) In order to take care of quality

requirements and facilitate ecofriendly

production of processed

fabric, eco-testing and quality

testing facilities have been created

throughout the country, so that the

testing facilities are available within

the reach of majority of manufacturers/

exporters of textiles items.

(iii) In order to boost investment in

high tech capital intensive textile

processing projects, a scheme to

provide 10% capital subsidy on

specified high tech machines has

been introduced. The units put up

under this scheme may avail 5%

interest reimbursement under TUFS,

in addition to 10% capital subsidy.

This facility has been extended for

11 th five year plan.

(iv) In order to develop textile clusters in

an integrated manner the scheme

of Textiles Centre Infrastructure

Development (TCIDS) has been

merged with Apparel Park Scheme

and is now known as Scheme for

Integrated Textiles Park (SITP). Under

this scheme the textile parks with

all infrastructural facilities including

state-of-the-art effluent treatment

plants are encouraged. The scheme

provides for 40% subsidy on the

project cost subject to the maximum

of Rs.40 crore.

TECHNICAL TEXTILES

Technical textiles are defined as textile

materials and products used primarily for

45


ministry of textiles

their technical performance and functional

properties rather than their aesthetic or

decorative characteristics. Other terms

used for defining technical textiles include

industrial textiles, functional textiles,

performance textiles, engineering

textiles, smart textiles and hi-tech textiles.

Technical Textiles is the emerging area

for investment in India. The potential of

technical textile in India is still untapped.

In order to address the major constraints

for improving production and consumption

of technical textiles, Ministry of Textiles

has launched Technology Mission on

Technical Textiles (TMTT) with two minimissions

for a period of five years (from

2010-11 to 2014-15) with a fund outlay of

Rs. 200 crore during December 2010. The

details of the mission are given below:

Mini-Mission- I of TMTT

Objectives: Standardization, creating

common testing facilities with national /

international accreditation, indigenous

development of prototypes and resource

center with I.T. infrastructure.

Interventions

a) Setting up of four Centers of

Excellence (COEs) to provide

infrastructure support at one place for

the convenience of manufacturers of

technical textiles: In addition to four

COEs already established in Agrotech,

Geotech, Protech and Meditech under

Scheme for Growth and Development

of Technical Textiles (SGDTT), four

more COEs have been set up in the

area of Nonwovens, Composites,

Indutech and Sportech to support the

manufacturers of technical textiles of

respective segment. The four new

Centres of Excellence are given at

table 3.8.

The essential facilities to be created in the

Centres of Excellence are as follows:

i) Facilities for testing and evaluation

of products of identified segments

of technical textiles with national/

international accreditation and

collaboration with foreign institutes /

laboratories

ii) Resource Centre with I.T.

infrastructure

iii) Facilities for indigenous development

of prototypes

iv) Facilities for training of core personnel

and regular training of personnel from

the technical textile industry

v) Knowledge sharing with stake

holders

vi) Incubation Centre

vii) Setting up of standards at par with

global level

b) Upgradation of existing four

Centres of Excellence

Sr.

No.

1.

Name of agencies

Table 3.8

DKTE Society’s Textile and Engineering Institute, Ichalkaranji,

Maharashtra

Area of Centre

of Excellence

Non-Wovens

2. PSG College of Technology, Coimbatore, Tamil Nadu Indutech

Ahmedabad Textile Industry’s Research Association (ATIRA), Ahmadabad, Composites

3.

Gujarat.

4. Institute of Chemical Technology (ICT), Mumbai Sportech

46


annual report 2011-12

Four COEs have already been

established namely BTRA for

Geotech, SITRA for Meditech, NITRA

for Protech & SASMIRA for Agrotech

under the Scheme for Growth and

Development of Technical Textiles

(SGDTT), but these centres are not

having facilities for development

of prototypes, incubation centre

for products of their segments and

provision for recurring expenditure for

appointment of experts. Therefore,

a fund support is being provided to

the existing COEs to upgrade them

in line with new COEs.

Mini-Mission- II of TMTT

Objectives: Support for domestic &

export market development of technical

textiles

Interventions:

a) Support for business start-up:

Technical textiles is a new area

and entrepreneurs especially SME

sector find it difficult to start a project

on technical textiles .The COE

and other associations / institutes/

independent reputed consultants

have been empanelled by the MOT

/ Office of the Textile Commissioner

who will prepare project reports and

do the hand holding of the potential

entrepreneurs till the completion of

the projects. So far, five consultants

have already been empanelled for

Business Start-up under Technology

Mission on Technical Textiles

(TMTT). These consultants will

provide end to end service to the

potential investors including product

selection, technology definition and

procurement, market assessment,

commercialization and marketing

assistance.

b) Providing fund support for

organizing workshops:

The awareness about the technical

textiles is still low among the stake

holders. In order to create the

awareness about technical textiles,

reputed National and International

agencies including the Indian Diaspora

settled abroad are being invited to

conduct Seminars, Workshops and

short term training programmes in which

know-how about latest technology,

international practices, market details,

global scenario etc. is being shared.

So far, eight programmes have already

been organised during this year under

this component. Programmes have

received huge response from all stake

holders.

c) Social compliance through

standardization, regulatory

measures:

Some technical textiles require

encouragement for use by user

industries/Ministries and some

require mandatory prescription.

Consultants are being engaged

to identify the needed regulatory

changes required along with

international best practices and also

the strategy to facilitate such changes

in the rules and regulations.

d) Market development Support for

marketing support to bulk and

institutional buyers etc.:

Under the Scheme Buyers-sellers

meet will be organized across the

country wherein the indigenous

manufacturers can showcase their

products and institutional buyers will

be invited for enhancing marketing

competitiveness of manufacturers.

47


ministry of textiles

“TECHNOTEX INDIA 2011:

International Exhibition &

Conference on Technical Textiles

was organized during 25-27

August 2012 at Mumbai under this

component. The programme was

inaugurated by Textile Minister

and was attended by Chief Minster

Maharashtra, and Textile Minister,

Karnataka. The programme was

a huge success. 102 companies

participated as exhibitors. There

was a separate China pavilion

in the exhibition and three State

Pavillions. Over 280 delegates

attended the Conference. 41

speakers addressed the delegates

and made presentations.

e) Market development Support for

export sales:

There are many reputed technical

textile fairs organized abroad. The

participation in these fairs will improve

the export potential of the indigenous

manufacturers. Some of the technical

textile units are also participating in the

exhibition of application based fairs.

The support includes participation

in Technical Textile fairs/Application

based fairs by the Indian technical

textile manufacturers to exhibit their

products. Seven units have been

approved for support under this

component till date.

f) Contract Research and

Development through IITs/TRAs/

Textile Institutes:

Technical textiles is high technology

area where most of the new material

high-end converted products are

imported, there is strong need for

indigenous development of products

for which R&D is of prime importance.

Therefore, contract research is

covered under this head. Individual

unit or two or more unit may come

together for a Contract research

proposal.

*****

48


annual report 2011-12

CHAPTER IV

EXPORTS

49


50

ministry of textiles


annual report 2011-12

CHAPTER IV

EXPORTS

India’s textiles and clothing industry is

one of the mainstays of the national

economy. It is also one of the largest

contributing sectors of India’s exports

worldwide. The report of the Working

Group constituted by the Planning

Commission on boosting India’s

manufacturing exports during 12th Five

Year Plan (2012-17), envisages India’s

exports of Textiles and Clothing at US$

32.35 billion by the end of XIth Five Year

plan, as against of US$ 55 billion envisaged

in the Report of Working Group on Textiles

for the XIth Five Year Plan and based on

historic growth rate of 10% (CAGR), a

business as usual approach, will result in

exports of US$ 52 billion by the end of XI

Plan. An export target of US$ 65 billion

and creation of 25 million additional jobs

has been proposed with a CAGR of 15%

during the XII Plan. At current prices the

Indian textiles industry is pegged at US$

55 billion, 64% of which services domestic

demand. The textiles industry accounts

for 14% of industrial production, which is

4% of GDP; employs 35 million people

and accounts for nearly 12% share of the

country’s total exports basket.

Milestones

= Exports of textiles and clothing

products from India have increased

steadily over the last few years,

particularly after 2004 when textiles

exports quota stood discontinued.

= India’s Textiles & Clothing (T&C)

exports registered a robust growth

of 25% in 2005-06, recording a

growth of US$ 3.5 billion over

2004-05 in value terms thereby

reaching a level of US$ 17.52 billion

and the growth continued in 2006-

07 with T&C exports of US$19.15

billion recording a increase of

9.28% over the previous year and

reached US$ 22.15 billion in 2007-

08 denoting an increase of 15.7%;

but declined by over 5% in 2008-09.

Exports of Textiles & Clothing grew

from US$ 21.22 billion in 2008-

09 to US$ 22.41 billion in 2009-10

and has touched US$ 26.82 billion

in 2010-11. In the current financial

year i.e. 2011-12, exports of textiles

and clothing, as per latest available

data covering April-October, 2011,

has grown by 28.94% over the

corresponding period of 2010-11.

= The details of India’s textiles exports,

principal commodity-wise during the

last three years and current financial

year for the period April-October

2011 is at table 4.1.

= During the year 2010-11,

Readymade Garments account

for almost 40% of the total textiles

exports. Apparel and cotton textiles

products together contribute nearly

70% of the total textiles exports.

= The exports basket comprise a wide

range of items including readymade

garments, cotton textiles, handloom

textiles, man-made fibre textiles,

wool and woolen products, silk, jute

and handicrafts including carpets.

= India’s textiles products, including

handlooms and handicrafts, are

exported to more than a hundred

countries. However, the USA and

the EU, account for about two-thirds

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ministry of textiles

Table 4.1

India’s textiles exports at a glance (Principal Commodities)

Prepared on 24.01.2012

Item 2008-09 2009-10 2010-11(P) Variation Apr-Oct 2010 Apr-Oct 2011(P) Variation

Rs.Crore US$ Mn Rs.Crore US$ Mn Rs.Crore US$ Mn Rs. US$ Rs.Crore US$ Mn Rs.Crore US$ Mn Rs. US$

Readymade Garment 47112.77 10383.26 47608.39 10064.73 48355.57 10627.99 1.57% 5.60% 25254.29 5512.15 32436.57 7088.74 28.44% 28.60%

RMG of cotton including accessories 38522.72 8490.08 38070.33 8048.32 37687.51 8283.27 -1.01% 2.92% 19292.50 4210.89 24076.03 5261.62 24.79% 24.95%

RMG of Man-made fibre 4721.94 1040.68 5745.29 1214.59 6489.07 1426.22 12.95% 17.42% 3610.91 788.14 5265.62 1150.76 45.83% 46.01%

RMG of other textile material 3868.11 852.50 3792.77 801.82 4178.99 918.49 10.18% 14.55% 2350.88 513.12 3094.92 676.37 31.65% 31.82%

Cotton Textiles 21795.40 4803.52 27016.21 5711.41 38038.19 8360.35 40.80% 46.38% 15884.11 3466.96 22418.43 4899.36 41.14% 41.32%

Cotton raw including waste 2865.86 631.61 9537.08 2016.20 12981.04 2853.08 36.11% 41.51% 1766.55 385.58 5085.34 1111.36 187.87% 188.23%

Cotton yarn, fabrics & madeups 18929.54 4171.91 17479.13 3695.20 25057.15 5507.27 43.35% 49.04% 14117.56 3081.38 17333.09 3788.00 22.78% 22.93%

Man-made textiles 15090.76 3325.88 18783.13 3970.88 21125.13 4643.06 12.47% 16.93% 11297.00 2465.75 14713.41 3215.49 30.24% 30.41%

Manmade staple fibres 1172.01 258.30 1690.68 357.42 1998.11 439.16 18.18% 22.87% 1083.64 236.52 1338.66 292.55 23.53% 23.69%

Manmade yarn, fabrics & madeups 13918.75 3067.58 17092.45 3613.46 19127.02 4203.90 11.90% 16.34% 10213.36 2229.23 13374.75 2922.94 30.95% 31.12%

Wool & Woolen textiles 2199.49 484.75 2224.14 470.20 1955.31 429.75 -12.09% -8.60% 1139.74 248.77 1485.53 324.65 30.34% 30.50%

RMG of Wool 1742.97 384.14 1799.20 380.36 1477.27 324.69 -17.89% -14.64% 884.26 193.00 1092.21 238.69 23.52% 23.67%

Woollen yarn, fabrics & madeups 456.52 100.61 424.94 89.84 478.04 105.07 12.50% 16.96% 255.48 55.76 393.32 85.96 53.95% 54.15%

Silk 3107.78 684.93 2819.46 596.05 2708.02 595.19 -3.95% -0.14% 1484.22 323.95 1291.94 282.34 -12.95% -12.84%

RMG of Silk 1437.73 316.86 1383.42 292.46 1095.10 240.69 -20.84% -17.70% 630.92 137.71 741.12 161.97 17.47% 17.61%

Natural silk yarn, fabrics & madeups 1664.82 366.91 1411.12 298.32 1578.40 346.91 11.85% 16.29% 829.57 181.07 536.10 117.16 -35.38% -35.29%

Silk waste 5.23 1.15 24.92 5.27 34.52 7.59 38.52% 44.02% 23.73 5.18 14.72 3.22 -37.97% -37.89%

Handloom Products* 1252.81 264.85 1662.89 365.48 32.73% 38.00% 851.66 185.89 1483.21 324.14 74.16% 74.38%

Textiles (excluding handicrafts, jute & coir) 89306.20 19682.34 99704.14 21078.12 113845.11 25021.83 14.18% 18.71% 55911.02 12203.47 73829.09 16134.73 32.05% 32.21%

Handicrafts 4949.23 1090.77 4548.91 961.67 5445.45 1196.85 19.71% 24.46% 3042.42 664.06 2476.59 541.24 -18.60% -18.50%

Handicrafts (excluding handmade carpets) 1384.19 305.06 1066.58 225.48 984.65 216.41 -7.68% -4.02% 587.55 128.24 462.05 100.98 -21.36% -21.26%

Carpets (excluding silk) handmade 3506.37 772.77 3441.74 727.61 4444.96 976.95 29.15% 34.27% 2449.70 534.69 2006.50 438.50 -18.09% -17.99%

Silk carpets 58.67 12.93 40.59 8.58 15.84 3.48 -60.98% -59.43% 5.17 1.13 8.04 1.76 55.51% 55.71%

Coir & Coir Manufacturers 680.70 150.02 759.66 160.60 689.18 151.47 -9.28% -5.68% 383.08 83.61 531.43 116.14 38.73% 38.90%

Coir & Coir Manufacturers 680.70 150.02 759.66 160.60 689.18 151.47 -9.28% -5.68% 383.08 83.61 531.43 116.14 38.73% 38.90%

Jute 1375.78 303.21 1033.09 218.40 2076.34 456.36 100.98% 108.95% 1258.01 274.58 1197.02 261.60 -4.85% -4.73%

Floor covering of jute 251.63 55.46 281.07 59.42 336.93 74.05 19.87% 24.63% 207.75 45.34 141.31 30.88 -31.98% -31.89%

Other jute manufactures 491.64 108.35 300.19 63.46 505.58 111.12 68.42% 75.10% 272.15 59.40 448.61 98.04 64.84% 65.05%

Jute yarn 216.92 47.81 144.20 30.48 533.90 117.34 270.25% 284.93% 353.84 77.23 136.31 29.79 -61.48% -61.43%

Jute hessian 415.59 91.59 307.63 65.04 699.93 153.84 127.52% 136.54% 424.27 92.60 470.79 102.89 10.96% 11.10%

Total Textiles Exports (incl. handicrafts, coir

& jute)

96311.91 21226.34 106045.80 22418.79 122056.08 26826.50 15.10% 19.66% 60594.53 13225.72 78034.13 17053.71 28.78% 28.94%

% Textile Exports 11.46% 11.46% 12.54% 12.54% 10.63% 10.63% 10.74% 10.74% 10.03% 10.03%

India’s exports of all commodities 840755.06 185295.36 845533.64 178751.43 1148169.56 252354.27 35.79% 41.18% 564313.88 123170.46 778375.03 170107.38 37.93% 38.11%

Source : Foreign Trade Statistics of India( Principal Commodities & Countries), DGCI&S for export figures in Rupee and Department of Commerce(Intranet) -Exchange rate

*Handloom Products have been included as commodities first time in 2009-10

Exchange rate (Source:DOC intranet) Apr-Mar’ 2008-09 Apr-Mar’ 2009-10

52


annual report 2011-12

of India’s textiles exports. The other

major export destinations are China,

U.A.E., Sri Lanka, Saudi Arabia,

Republic of Korea, Bangladesh,

Turkey, Pakistan, Brazil, Hong Kong,

Canada, Egypt etc.

= As per the latest available export

data, the salient features of the

overall textile exports for the period

April, 2011 to October, 2011(P) are

as follows:

Overall Exports

= The total textile exports during April,11

to October,11 (P) were valued at

Rs. 78034.13 crore as against

Rs. 60594.53 crore during the

corresponding period of financial year

2010-11, registering an increase of

28.78 percent in rupee terms.

= In US dollar terms, the same was

valued at US$17053.71 million as

against US$ 13225.72 million during

the corresponding period of previous

financial year registering an increase

of 28.94 percent in US$ terms.

= However, the share of textiles in

India’s total exports of all commodities

has declined to 10.03 percent from

10.74 per cent during April- October,

2011 as against April- October, 2010.

Composition of Textiles

Export

= In rupee / US$ terms (during 2010-

11), exports of readymade garments

witnessed the highest export share

of 39.61 percent, followed by Cotton

Textiles (31.16), and Man-Made

Textiles (17.31).

Trend during the period

April,11 to October, 11.

= In rupee terms, during April,11 to

October,11 (P) there has been

a surge in exports of Handloom

product (74.16%), Wool & Woolen

textile (30.34%), Man-made textiles

(30.24%), RMG (28.44%), Coir &

Coir Manufactures (38.73%), Cotton

Textiles (41.14%).

= In US$ terms the surge during

April,11 to October,11 registered

in Handloom products at 74.38%,

Wool & Woolen textiles (30.50%),

Man-made textiles (30.41%),

RMG (28.60%) and in Coir & Coir

Manufactures (38.90%) and Cotton

Textiles (41.32%)

Liberalized trading regime

and emerging opportunities

In the liberalized post-quota period,

India has emerged as a major sourcing

destination for buyers from all over the

globe. As a measure of growing interest

in the Indian textiles and clothing sector,

a number of reputed houses opened

their sourcing / liaison office in India.

These include Marks and Spencer,

Haggar Clothing, Kellwood, Little Label,

Boules Trading Company, Castle, Alster

International, Quest Apparel Inc., etc.

Commercially the buoyant retailers

across the world are looking for options of

increasing their sourcing from the Indian

markets. Indian manufacturers are also

pro-actively working towards enhancing

their capacities to fulfil this increased

demand.

(i)

Global exports of Ready Made

Garments (RMG)

= Global exports of RMG during 2008-

09 were of the order of US$ 10.38

billion, which recorded a marginal

decrease to US$ 10.06 billion during

2009-10. However, exports of RMG

grew by 5.60% to US$ 10.63 Billion

in 2010-11.

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ministry of textiles

= As per latest available statistics,

exports of RMG during April-

October, 2011 was of the order of

USD 7088.74 million as against

USD 5512.15 million during the

same period last year, indicating

an increase of over 28.60% in US$

terms this year.

= EU was the biggest destination for

RMG exports, with over US$ 5.3

billion worth of exports during the

year ending March, 2011, recording

a growth of over 1% compared to

exports in 2009-10.

= US was the second biggest

destination for RMG, with exports of

US$ 2.85 billion for the year ending

March,11, recording a growth of

7.29% over the last financial year.

= UAE was the third biggest destination

with over a billion dollar worth of

exports to that group.

(ii)

Global exports of Handicrafts (HC)

= Exports of Handicrafts was of the

order of US$ 1.45 Billion in 2007-08

and had drastically reduced to US$

1.09 Billion in 2008-09 and further

went down to US$ 961.67 Million

in 2009-10. However, during the

financial year 2010-11, the exports

of handicrafts has appreciated to

USD 1.19 billion, recording a surge

of 24.46%.

(iii) Global exports of Handlooms (HL)

= Harmonized System of Classification

for Handlooms products was

introduced in 2009-10.

= Exports of Handlooms during 2009-

10 were of the order of US$ 260

Million and increased to 365 million

in 2010-11, recording a growth

of 38%.

= The biggest destination of India’s

Handlooms products is the USA

followed by the EU.

Country-wise analysis

= In the global market exports of

clothing, India ranked as the sixth

largest exporter as per WTO data

– 2010 (latest), trailing Turkey,

Bangladesh, Hong Kong, EU-27

and China. In the global exports of

Textiles, India ranked as the third

largest exporter, trailing EU-27 and

China, as per WTO data – 2010

(latest).

= Since August, 2008, the major

markets for India’s exports of T&C

products viz. USA, EU and Japan

have witnessed recessionary

conditions and financial crisis, and

textiles sector was amongst the

worst hit. However these adverse

economic conditions appeared to

have abated somewhat since 2010

with the USA, the single largest

importer of textiles and clothing

items, observing a positive growth

of 14.22% and 17.03% in its import

of T&C from the world and India

respectively during the calendar

year 2010. This trend has continued

during 2011 when USA observed

a positive growth of 8.90% and

10.32% in its imports of T&C from the

world and India respectively. Almost

all major T&C exporting countries

showed positive trend in the US

market during the first nine month of

calendar year 2011. (Source: GTIS)

= The EU’s overall T&C import

registered a growth of 7.30% in

2008, decline of 11.87% in 2009 and

growth of 7.67% in calendar year

2010. In calendar year 2011, EU’s

overall imports of T&C have grown

by 15.38% while India recorded

54


annual report 2011-12

a growth of 17.53% over the

corresponding period in 2010. China

& Turkey, the two largest exporters

of T&C to EU have recorded growth

of 11.36% and 13.08% respectively

during same period. (Source: GTIS)

Imports

The total imports of T&C products by

India reached US$ 4.09 billion in 2010-

11. Man-made Filaments was the biggest

import amongst T&C items, with a share of

USD 0.66 billion followed by impregnated

textile fabric (USD 0.62 billion) and manmade

staple fibre with a share of USD

0.42 billion. The imports have increased

by 21.69% during 2000-11 in dollar terms

over the corresponding period last year.

However, the share of import of T&C

products by India as percentage of total

imports of all commodities has decreased

during 2010-11, and stood at 1.10% as

against 1.17% during 2009-10.

Export Promotion Measures

The Government has been continually

supporting the textiles exports sector

through various provisions of the Foreign

Trade Policy and the other policy initiatives

to enable the sector to increase market

share in the global textiles markets.

EXPORT PROMOTION COUNCILS

There are eleven textiles Exports

Promotion Councils representing all

segments of the Textiles & Clothing

sector, viz. readymade garments, cotton,

silk, jute, wool, powerloom, handloom,

handicrafts, carpets. These Councils

work in close cooperation with the Ministry

of Textiles and other Ministries to promote

the growth of their respective sector in

the global export markets. The Councils

participate in textiles and clothing fairs

and exhibitions in India and abroad as

well as mount stand alone shows in India

and abroad to enhance the markets of

their respective sectors. These councils

are:-

i) Apparel Export Promotion Council

(AEPC)

ii)

iii)

iv)

The Cotton Textiles Export Promotion

Council (TEXPROCIL)

The Synthetic & Rayon Textiles Export

Promotion Council (SRTEPC)

Wool & Woollen Export Promotion

Council (WWEPC)

v) Wool Industry Export Promotion

Organization (WOOLTEXPRO)

vi)

vii)

Indian Silk Export Promotion Council

(ISEPC)

Carpet Export Promotion Council

(CEPC)

viii) Export Promotion Council for

Handicrafts (EPCH)

ix)

Powerloom Development & Export

Promotion Council (PDEXCIL)

x) Handloom Export Promotion Council

(HEPC)

xi)

Jute Product Development Export

Promotion Council (JPDEPC)

Export Promotion Activities

of EPCs

During the year 2010-11, the EPCs

continued export promotion activities

of textiles exports. These included

participation in overseas exhibitions/

fairs, organisation of Buyer-seller-Meets

(BSMs) abroad and, sponsoring trade

delegations for consolidating the existing

markets and exploring new markets.

Major textiles fairs like India International

Garment Fair and Indian Handicrafts &

Gifts Fair were held in New Delhi, which

attracted large number of buyers from all

55


over the world. The EPCs participated in

all major fairs & exhibition world-wide, and

Textiles Mega Shows were jointly put up

in Japan, South Africa and Latin America

with the support of the Government.

Apparel Training & Design

Centres (ATDCs)

The Apparel Training & Design Centre

was registered as a Society under

Societies Registration Act on February

15, 1991 at New Delhi with the mission

to upgrade the technical skills of the

*****

ministry of textiles

human resource employed in Garment

Industry. There are 75 ATDC centres

including 25 ATDC-IGNOU community

colleges and over 50 SMART (Skill

for manufacturing of Apparels through

Research & Training) centres and skill

campus at present functioning across

the country to provide trained manpower

in the field of Pattern Making/Cutting

Techniques and Production Supervision

and Quality Control Techniques to the

Readymade Garment Industry so that

quality garments are manufactured for

the global market.

56


annual report 2011-12

CHAPTER V

COTTON

57


58

ministry of textiles


annual report 2011-12

CHAPTER V

COTTON

Cotton is one of the major crops

cultivated in India. It accounts

for more than 75% of the total

fibre consumption in the spinning mills

and more than 54% of the total fibre

consumption in the textile sector. The

twin objective of assuring off-take of the

farmer’s produce at remunerative prices

and making available adequate quantity

of cotton at a reasonable prices to the

domestic textile industry, are sought to be

achieved through timely announcement

of remunerative Minimum Support

Price (MSP) to the farmer and through

appropriate export-import intervention as

and when necessary. The New Textile

Policy aims at improving the quality of

cotton to that of international standards

through effective implementation of the

Technology Mission on Cotton (TMC).

Production and Consumption





During the last five decades, the

production of cotton increased from

30.00 lakh bales of 170 kgs each

in 1950-51 to an all-time record of

356.00 lakh bales of 170 kgs each

during 2011-12.

Acreage under cotton cultivation has

also increased and from 58.82 lakh

hectares in 1950-51 to a record high

of 121.91 lakh hectares in 2011-12.

The average yield has also increased

from 88 kgs in 1950-51 to 554 kgs in

2007-08.

Due to receipt of good prices by the

cotton farmers for their produce in

previous cotton season there has

been significant increase in cotton

acreage under cotton in cotton




season 2011-12. Acreage under

cotton cultivation has increased by

10% to 121.91 lakh hectares in 2011-

12 as against 111.42 lakh hectares

in the previous season. The rise in

acreage has been mainly due to

switching from other competing crops

viz., maize, jawar, pulses etc. With

various governmental measure to

improve farm practices and release

of Bt seeds have enabled the farmers

to sustain their continued interests in

cotton cultivation.

One of the reasons for low yield in

India as compared to world average

of about 745 kgs/hectare is that

nearly 65% of the area under cotton

cultivation is rainfed. Despite delayed

sowing and subsequent continuous

rains in Northern and Central zone,

with subsequent favourable agroclimatic

conditions, the crop progress

is satisfactory in all the cotton

growing States. As a result, the

cotton production in the country is

also expected to increase by 10% to

356.00 lakh bales as against the last

year.

The largest share in the total

production of cotton is of long staple

varieties followed by medium and

medium long staple. The share of

short staple is about 1% and the

share of medium & medium long

staple varieties was around 20% and

the remaining are long and extra long

staple varieties.

In recent years, there has been a

shift in the cultivation pattern and

farmers have switched over to high

59


ministry of textiles


yielding long staple varieties from

the medium staple varieties. The

main cotton producing States are

Maharashtra, Gujarat, Andhra

Pradesh, Madhya Pradesh, Punjab,

Haryana, Rajasthan, Karnataka,

Tamil Nadu.

Domestic consumption of cotton

fibre has witnessed sustained

growth since 2003-04 onwards

due to growing demand for Indian

textiles and subsequently, there has

been considerable expansion and

modernization of textile mills.

● Even though the Indian cotton

consumption has increased with

rapid pace in the last few years,

still it has not kept pace with the

growth in domestic cotton production

resulting into surplus availability

for exports. The consumption level

including consumption of spinning

units in the Small Scale Sector

and non-mill consumption during

2011-12 has been 250.00 lakh bales

as against 253.00 lakh bales in the

previous year.


The projected slowdown in global

economic growth in 2011 and 2012

is expected to affect the cotton

consumption of textile products and

therefore demand for cotton fibre

domestically and internationally.

Cotton consumption is likely to be

influenced by the cotton farmers in

the previous cotton season. As a

result, the consumption is estimated

at 250.00 lakh bales in 2011-12 as

against 253.00 lakh bales in previous

year.

Data on area, production, yield and

consumption of cotton is given at table 5.1.

Export of cotton

During cotton season 2010-11, with

increased cotton production for the fourth

consecutive year, there was abundant

availability of cotton facilitating cotton

exports from the country. Further, during

the season, the prices of Indian cotton

remained competitive and attractive to

the overseas buyers as compared to the

prices of other equivalent foreign growths.

With improvement in quality of Indian

Table 5.1

AREA, PRODUCTION, YIELD AND CONSUMPTION OF COTTON IN LAST FIVE

YEARS INCLUDING CURRENT YEAR 2011-12.

Cotton Year

Area in lakh

hectares

Cotton

Production in

lakh bales of 170

kgs

Cotton Yield

in Kgs/Hectare

Cotton Consumption

in lakh bales of 170

kgs(Mill+Non-mill+Small

mill)

2006-07 91.44 280.00 521 232.03

2007-08 94.14 307.00 554 236.88

2008-09 94.06 290.00 524 229.00

2009-10 103.10 305.00 503 259.00

2010-11 111.42 325.00 496 253.00

2011-12* 121.91 356.00 496 250.00

Source: Cotton Advisory Board

*As per CAB meeting held on 15 th Nov 2011

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annual report 2011-12

cotton in terms of contamination and trash

contents at par with the international level

the demand for Indian cotton has been

increasing substantially. During the cotton

season 2011-12, the cotton exports from

the country had been placed at 80.00 lakh

bales as against 70.00 lakh bales during

2010-11.

In the current cotton season 2011-12, due

to increased gap between production vs.

consumption, the cotton imports by China

are expected to rise to 3.26 million tons as

against 2.61 million. Besides this, world

cotton trade is also expected to increase

by 2% to 7.8 million tons as against 7.6

million tons in previous year. Due to this

as also due to increased availability of

cotton, the Cotton Advisory Board has

placed cotton exports in 2011-12 at 80.00

lakh bales as against 70.00 lakh bales

in previous season. Looking to this, for

cotton season 2011-12, the Government

of India has placed cotton exports under

OGL. However, cotton exports from the

country shall depend upon the price parity

of domestic cotton vis-à-vis equivalent

foreign growths.

Price of kapas (seed cotton)

Government of India announces Minimum

Support Price for two basic staple groups

viz., medium long staple (staple length

24.5mm to 25.5mm and micronnaire

value 4.3 to 5.1) and long staple cotton

(staple length 29.5mm to 30.5mm and

micronnaire value 4.3 to 5.1).

Cotton Corporation of India (CCI) is the

nominated agency of the Government of

India for undertaking MSP operations in the

event of prevailing kapas prices touching

the MSP level. As per the mandate, in

MSP operations, CCI purchase the entire

quantity offered to it by the cotton farmers

at APMC market yards, without any

quantitative restrictions.

For cotton season 2011-12, the

Government of India has increased the

MSPs by 10% to 12% as compared to

previous year.

In current cotton season 2011-12, the

prevailing kapas prices in almost all

the cotton growing States have been

ruling above MSP level. However, due

to financial tightness caused by heavy

losses suffered in previous year, the mills

are refraining themselves from covering

cotton requirement for lean season. This

may put pressure on the prevailing kapas

prices, especially in the States of Andhra

Pradesh, Maharashtra, Madhya Pradesh

and some parts of Gujarat may touch

MSP level and with a view to ensure

remunerative prices to the cotton growers,

the nodal agencies may have to undertake

MSP operations in such areas.

COTTON CORPORATION OF INDIA

LTD., (CCI), MUMBAI

The Cotton Corporation of India Ltd., (CCI)

was set up in 1970 with the objective of

acting as the canalizing agency for import

of cotton and undertaking purchase of raw

cotton for giving necessary price support to

enterprising cultivators growing new varieties

of cotton developed as substitute for imported

long and extra long staple cottons as also for

procuring raw cotton for textile mills, both in

public and private sectors.

Over the years, its operations have

undergone significant changes in keeping

with the developments taken place in the

Indian cotton economy during past two

decades.

In the Textile Policy, 1985, CCI’s role was

expanded to carry out commercial operations

for meeting the cotton requirements of

institutional buyers and to fulfill the export

quotas allocated to it by the Government

of India. However, with liberalization,

since cotton exports have been placed

under Open General Licence (OGL), the

system of allocation of export quotas in

favour of different agencies have been

dispensed with.

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ministry of textiles

The Government of India had launched

Technology Mission on Cotton (TMC) in

February 2000 with four Mini Missions.

CCI had been the implementing agency

for Mini Mission III (Improvement of

Marketing Infrastructure) and Mini Mission

IV (modernization/upgradation of existing

G&P factories).

The cotton season 2010-11 had been

a unique year in the history of cotton

economy of the country in as much as the

cotton season witnessed unprecedented

volatility in the prices of both kapas (seed

cotton) and lint cotton. In the first half of

the season, cotton prices had reached a

record level and the same subsequently

dropped substantially. This was mainly

due to historically tight world opening

stock to use, slowing demand, difficulties

to access credit by the cotton spinners,

declining prices of cotton yarn etc.

Since the prevailing kapas prices in

cotton season 2010-11 had ruled above

MSP level throughout the season, the

Corporation had no occasion to undertake

MSP operations in any of the cotton

growing States. However, with a view to

cater the needs of its regular buyer mills

as also to ensure competitive prices to

the cotton farmers, the Corporation had

undertaken commercial operations and

had purchased 13.66 lakh bales.

COTTON ADVISORY BOARD (CAB)

The Cotton Advisory Board (CAB) is a

representative body of various interest

groups/stakeholders in cotton sector viz.,

Governmental agencies, cotton growers,

textile industry and trade. It advises

the Government generally on matters

pertaining to production, consumption

and marketing of cotton and also provides

a forum for liaison amongst the cotton

textile mill industry, the cotton growers,

the cotton trade and the Government.

The Board, reconstituted on 4 th May

2010, has got 75 members of which 9 are

Central Government nominees, 9 State

Government nominees, 4 cotton farmers

representatives, 3 representatives of

cotton manufacturers, 15 representatives

of textile industry, 6 representatives of

cotton trade, 4 representatives of Ginning

and Pressing sector, 4 representatives

of cotton research and development

institutions, 1 each of powerloom and

handloom sector and 18 other nominated/

special invitee members and one member-

Secretary. The reconstituted Board is valid

upto 4 th May 2012.

INTERNATIONAL COTTON ADVISORY

COMMITTEE (ICAC)

The International Cotton Advisory

Committee is an association of various

Governments having interests in production,

export, import and consumption of cotton.

It is an organization designed to promote

cooperation in the solution of cotton

problems, particularly those of international

scope and significance. India is a member of

the ICAC and makes an yearly contribution

towards it, as assessed by it from time

to time.

The 70 th Plenary session of the ICAC was

held in Buenos Aires, Argentina during

September 2011. The theme of plenary

meeting was “Public and Private sector

role in the Cotton Value Chain: Ensuring

Both Efficiency and Fairness”.

The Cotton Yarn Advisory Board

The Cotton Yarn Advisory Board, headed by

the Textiles Commissioner was constituted

on 13th September, 2010 up to 31st March,

2012 or until further orders, whichever

is earlier. It is a representative body of

various inters groups like Government

agencies, textiles industry and trade. Its

main functions are to monitor domestic and

international prices of cotton yarn, suggest

measures for increasing the availability of

cotton yarn, monitor import and export of

yarn and prepare the Cotton Yarn Balance

Sheet.

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annual report 2011-12

CHAPTER VI

THE JUTE AND JUTE

TEXTILES INDUSTRY

63


64

ministry of textiles


annual report 2011-12

CHAPTER-VI

THE JUTE AND JUTE TEXTILES INDUSTRY

Raw Jute

The Jute industry occupies an

important place in the national

economy of India. It is one of the

major industries in the eastern region,

particularly in West Bengal. Jute, the

golden fibre, meets all the standards for

‘safe’ packaging in view of being a natural,

renewable, biodegradable and ecofriendly

product. It is estimated that the

jute industry provides direct employment

to 0.37 million workers in organized mills

and in diversified units including tertiary

sector and allied activities and supports

the livelihood of around 4.0 million farm

families. In addition, there are a large

number of persons engaged in the trade

of jute.

In the world perspective, India is the

major producer of both raw jute and jute

products. Out of the total world production

of Jute, Kenaf and allied fibre of 3.0 million

tonnes in 2007-08, India produced 1.8

million tonnes. In percentage terms India

accounted for 60 % of world production

in 2007-08. Global production of jute and

allied fibres is estimated to have increased

Jute Yarn

by 25 % to 3.0 million tonnes in 2007-08

compared to 2004-05 season. Production

in India has also increased by 28% to 1.8

million tonnes in 2007-08 over 2004-05.

There are 83 composite jute mills in India.

Out of the total 83 jute mills, 64 jute mills

are located in West Bengal, 3 each in

Bihar and U.P., 7 in Andhra Pradesh 2

each in Chattisgarh & Orissa and 1 each

in Assam and Tripura. Ownership- wise

division is:- 6 mills are under Government

of India’s P.S.U., 1 mill (Tripura) is under

State Government, 2 mills (Assam & New

Central) are in the co-operative sector and

74 are privately owned mills.

As on 31-01-2010 total number of looms

installed in the jute industry stood at 48,245

consisting of 23,372 Hessian looms, 22,148

sacking looms, 1,058 C.B.C looms and

others at 1,060. The installed spindles in

jute mills other than 100% export oriented

units were 731,408 comprising of 622,324

fine spindles and 109,084 coarse spindles.

Installed spindles in 100% export oriented

units stood at 9,482 with fine spindles at

6,974 and coarse spindles at 2,508. The

65


ministry of textiles

maximum installed capacity in jute mills

other than 100% export oriented units (on

the basis of 305 working days per year) is

estimated to be of 2.47 million tonnes per

annum.

RAW JUTE SCENARIO

Raw jute crop is an important cash crop

to the farmers. Cultivation of raw jute

crop provides not only fibre, which has

industrial use, but also the jute stick which

is used as fuel by the farming community.

Raw jute is produced mainly in the states

of West Bengal, Bihar, Assam, Orissa,

Andhra Pradesh, Tripura and Meghalaya.

The table 6.1 will indicate the supply

demand position of raw jute including

mesta for the period from 2006-07 to

2011-12:-

JUTE SEEDS

Based on the average area under jute

cultivation in the country, the annual

requirement of jute seeds is around 50-55

thousand quintal. The average area under

jute cultivation in West Bengal is little

more than 6 lakh hectares for which the

annual requirement of jute seeds is nearly

35-40 thousand quintal. The present level

of certified jute seed production can cater

to the needs of nearly 35 per cent of the

jute area in the country. Public Sector

Organizations like the National Seeds

Corporation, the Maharashtra State Seed

Corporation, the State Farms Corporation

of India are the major producers of jute

seed. This apart, the Andhra Pradesh

State Seeds Development Corporation

and the West Bengal State Seeds

Corporation are also involved in jute seed

production. The total production of seed,

mainly certified seed, by the Public Sector

organizations is about 25-30 per cent

of the total requirement. The rest of the

seed is produced by the Private Sector

organizations.

For augmenting supply of certified seeds,

Jute Corporation of India has taken the

following steps:-

Table 6.1

RAW JUTE BALANCE SHEET

(Qty.: In lakh bales of 180 kg of each bale)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

(A) SUPPLY

i) Opening stock 8.00 23.00 22.00 8.00 12.00 18.00

100.00 99.00 82.00 90.00 100.00 110.00

iii) Import 4.00 8.00 2.00 3.00 6.00 5.00

Total 112.00 130.00 106.00 101.00 118.00 133.00

(B)DISTRIBUTION

iv)Mill consumption 81.00 99.00 89.00 77.00 90.00 95.00

v) Domestic/Industrial 8.00 9.00 9.00 10.00 10.00 10.00

consumption

vi) Export Neg Neg Neg 2.00 Nil 1.00

Total 89.00 108.00 98.00 89.00 100.00 106.00

(C)CLOSING STOCK 23.00 22.00 8.00 12.00 18.00 27.00

Source: Jute Advisory Board

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annual report 2011-12





In 2010, JCI had targeted a distribution

of 500 MT certified jute seeds during

sowing season i.e. March/April,

2010.

The subsidy of Rs. 40 per kg was

provided to jute growers.

JCI distributed 437.580 MT seeds.

JCI aims to distribute 1360 MT of

certified jute seeds in the year 2011

through its 171 DPCs along with the

help of State Cooperative Societies

and Farmers Club.

● JCI has so far (as on 04.05.2011)

distributed 676.96 MT seeds.

Further, the offices under Ministry of

Textiles (National Jute Board and Jute

Corporation of India) are working on

projects with CRIJAF and NIRJAFT

(research organizations under the Ministry

of Agriculture) to develop better jute seeds

to improve agronomical practices for jute

cultivation. In addition, the JCI and NJB

work together to distribute high yielding

certified jute seeds to farmers at subsidized

rates. In the coming season the target for

such distribution is 1300 MT (out of a total

demand of about 6000 MT).

Jute Packaging Material

(Compulsory Use in Packing

Commodities) Act, 1987:

The Jute Packaging Material (Compulsory

Use in Packaging Commodities) Act,

1987 has been enacted to provide for

the compulsory use of jute packaging

material in the supply and distribution of

certain commodities in the interests of

production of raw jute and jute packaging

material, and of persons engaged in

the production thereof, and for matters

connected therewith.

Clause 4 (1) of the Jute Packaging

Material (Compulsory Use in Packaging

Commodities) Act, 1987 empowers the

Central Government to constitute a

Standing Advisory Committee consisting

of such persons as have, in the opinion of

that Government, the necessary expertise

to give advice in the matter of determining

the commodity or class of commodities or

percentages thereof in respect of which

jute packaging material shall be used in

their packing.

As per clause 5 of the Jute Packaging

Material (Compulsory Use in Packaging

Commodities) Rule, 1987, the said

Committee shall meet at least once a

year to review the commodity or class

of commodities or percentages thereof

required to be packed in jute packaging

material under section 3 of the JPM Act.

The Standing Advisory Committee shall

after considering the following matters

make recommendations to the Central

Government:-



The existing level of usage of jute

material.

The quantity of raw jute available.

● The quantity of jute material

available.




The protection of interests of persons

engaged in the jute Industry and in

the production of raw jute.

The need for continued maintenance

of jute industry.

Such other matters as the Standing

Advisory Committee may think fit.

The Central Government may after

considering the recommendations of

the SAC, from time to time, issue orders

under section 3(1) of the JPM Act for

the compulsory use of jute packaging

material for certain commodity or class of

commodities or percentages thereof, if it

is satisfied that it is necessary to do so in

the interest of production of raw jute and

jute packaging material.

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ministry of textiles

The level of reservation recommended by

the Central Government in the past few

years have been given at table 6.2.

In the last Standing Advisory Committee

(19 th ) meeting held on 13.06.2011, the

representative of the Indian Sugar Mills

Association requested that like cement and

fertilizer, sugar should also be removed

from JPM Act with immediate effect. The

representative of the National Cooperative

Sugar Factories Association and All India Flat

Tape Association had endorsed the views of

ISMA. While summarizing the discussions,

it was emphasized that the socio-economic

factors have to be taken into account while

arriving at the decision for reservation norms

for 2011-12. After detailed deliberations on

the issue, the Standing Advisory Committee

agreed to recommend to the Government

that 90% of both foodgrains and sugar be

compulsorily packed in jute bags. However,

CCEA has approved 100% of both foodgrains

and sugar be compulsorily packed in jute

bags. The statutory order in this regard has

been issued.

PRODUCTION OF JUTE GOODS

During 2010-11 (April-March), the total

production of jute goods was around

1565.7 thousand MT compared to 1323.3

thousand MT in the corresponding period

of 2009-10 registering an increase of

18.3%. Production of jute goods in the

current financial year upto October, 2011

is at 895.2 thousand MT as against 930.0

thousand MT during the corresponding

period of last financial year.

Trends in the production of jute goods from

the year 2003-04 are given at table 6.3.

Table 6.2

Mandatory Jute Packaging Orders issued under JPM Act, 1987

Order Date Year Sugar Foodgrains

24.07.2006 2006-07 100% 100%

09.08.2007 2007-08 100% 100%

01.09.2008 2008-09 100% 100%

22.09.2009 2009-10 100% 100%

27.08.2010 2010-11 100% 100%

Table 6.3

(April-March) Hessian Sacking CBC Others Total

2003-04 305.2 979.3 4.7 84.4 1571.3

2004-05 310.3 992.0 4.1 94.0 1613.1

2005-06 320.0 1007.4 6.2 134.2 1582.1

2006-07 240.3 874.7 2.9 120.2 1356.3

2007-08 350.3 1143.0 6.0 276.7 1776.0

2008-09 297.8 1071.4 4.1 260.4 1633.7

2009-10 206.5 921.6 3.6 191.6 1323.3

2010-11 244.4 1076. 9 4.7 239.7 1565.7

2011-12

134.8 661.9 2.1 96.3 895.2

(April-Oct.)

2010-11

(April-Oct)

153.9 619.3 2.9 153.9 930.0

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annual report 2011-12

The Projections for production during

2011-12 is given at table 6.4.

Items

Table 6.4:

Qty. in ‘000’ MT

Hessian 231.1

Sacking 1134.8

CBC 3.6

Others 165.1

Total 1534.6

DOMESTIC OFF-TAKE OF JUTE

GOODS

During 2010-11 (April-March), the total

domestic consumption of jute goods was

1315.5 thousand MT as against 1205.2

thousand MT in the corresponding period

of 2009-10, recording an increase of

12.15.% During the current financial

year 2011-12 (April-October), domestic

consumption of total jute goods is 776.8

thousand MT as against 781.0 thousand MT

in the corresponding period of the last year.

Volume of B. Twill bags purchased by

different food grain procuring agencies

during financial year 2010-11 was

20,57,000 bales (683,952 MT) as against

16,73,000 bales (556,272 MT) in 2009-10.

In the current financial year 2011-12 (upto

December), a total quantity of 15,44,000

bales (513,380 MT) has been purchased

as against 14,88,000 bales (494,760 MT)

during the corresponding period of last

financial year.

Trends in domestic consumption of jute

goods from 2003-04 are given at table 6.5.

Table 6.5

QTY. IN ‘000’ MT

(April-March) Hessian Sacking CBC Others Total

2003-04 253.3 910.0 0.3 179.3 1342.9

2004-05 249.5 996.2 1.1 178.4 1424.1

2005-06 237.6 974.2 0.7 165.3 1377.8

2006-07 209.1 854.4 0.5 152.2 1216.2

2007-08 271.4 1101.9 1.4 168.6 1543.3

2008-09 249.8 1013.0 0.9 173.4 1436.2

2009-10 182.4 879.6 1.0 142.2 1205.2

2010-11 182.3 1034.4 0.9 133.9 1351.5

2011-12(April-Oct) 101.5 607.6 0.7 67.6 776.8

2010-11(April-Oct) 110.5 590.5 0.4 79.6 781.0

The Projections of domestic consumption

during 2011-12 are given at table 6.6.

Items

Table 6.6

Qty: In’000’MT

Hessian 174.0

Sacking 1041.6

CBC 1.2

Others 115.9

Total 1232.7

EXPORT PERFORMANCE

During 2010-11 (April-March) exports of

total jute goods were recorded at 199.3

thousand MT valued at Rs. 1363.29 crore

as against 110.5 thousand MT valued at

859.49 crore in the corresponding period of

financial year 2009-10. Export of jute goods

during 2010-11 has increased by 80.4%

in terms of quantity and 58.6% in terms of

value. During the current financial year (upto

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ministry of textiles

August), total export of jute goods stands

at 76.1 thousand MT valued at Rs. 575.53

crore as against 99.4 thousand MT valued

at Rs. 644.54 crore in the corresponding

period of last financial year.

EXPORT PERFORMANCE OF JUTE

GOODS

Trends in exports of jute goods from 2006-

07 to 2011-12 (up to August) are given at

table 6.7.

(A)

Table 6.7

Quantity in ‘000 M.Ton

Value: Rs. in Crores

(Apr-Mar) 2006-07 2007-08 2008-09 2009-10 2010-11

ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value

Hessian 122.2 376.12 67.8 299.83 53.0 419.53 31.3 318.45 53.9 264.98

Sacking 31.6 103.25 30.0 91.38 53.2 209.54 26.5 111.04 40.6 170.10

CBC 0.1 0.65 - - - - - - - -

Yarn 78.3 273.15 92.1 285.18 82.9 216.92 44.4 144.20 94.4 503.34

JDP - 256.48 - 402.55 294.53 230.83 356.37

Others 10.6 45.51 14.4 64.63 10.7 75.64 8.3 54.97 10.4 68.50

Total 242.8 1055.16 204.3 1143.57 199.8 1216.16 110.5 859.49 199.3 1363.29

% change

over last year -15% -11% -16% 8% -2.2% 6.3% -44.6% -29.3% 80.4% 58.6%

(B)

ITEM

APRIL-AUGUST AUGUST

Qty. (in’000’MT) Value (Rs. In Crores) Qty. (in’000’MT)

2010 2011

%

Change

over

Last year

2010 2011

%

Change

over last

year

2010 2011

%

Change

over last

year

Hessian 27.2 25.5 -6.2% 140.69 131.79 -6.32% 6.0 6.4 6.6%

Sacking 16.5 32.1 94.5% 62.91 151.79 141.28% 4.7 7.1 51.1%

Yarn 51.0 15.2 -70.2% 239.17 91.45 -61.76% 9.0 3.9 -56.6%

JDPs - - - 173.18 177.46 2.4% - - -

Others 4.7 3.3 -29.8% 28.59 23.04 19.4% 1.0 0.6 -4.0%

TOTAL 99.4 76.1 -23.4% 644.54 575.53 -10.70% 20.7 18.0 -13.0%

Source : JMDC

The Projected export during 2011-12 is given at table 6.8.

Table 6.8

Items Qty (In: ‘000’ MT) Value (Rs. Crores)

Hessian 61.2 316.3

Sacking 77.0 364.3

Yarn 36.5 219.5

JDPs - 425.9

Others 8.0 55.3

TOTAL 182.7 1381.3

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annual report 2011-12

The value of export of jute diversified products is given at table 6.9.

Table 6.9

Value of export of jute diversified products from India

(Value Rs. Million)

Products 2005-06 2006-07 2007-08 2008-09 2009-10

Floor Coverings 2133.90 1675.70 1825.80 1242.40 1268.90

Hand & Shopping Bags 880.03 703.10 1122.80 1656.90 981.32

Wall Hangings 4.61 4.20 2.20 1.10 1.24

Gift Articles 21.63 9.27 11.10 4.00 17.62

Decorative Fabrics 22.91 21.90 16.80 17.20 21.47

Others 62.84 150.63 6.80 23.30 17.73

Total JDPs 3125.92 2564.80 2985.50 2945.50 2308.28

Total jute goods exports 11862.40 10551.60 11435.70 12161.6 8594.64

% share of JDP export total jute

exports.

26% 24% 26% 24% 27%

Import of Raw jute and Jute

goods

During the year 2009-10 volume of import

of jute goods stood at 112.8 thousand MT

valued at Rs.453.2 crores as against 70.94

thousand MT valued at Rs.202.99 crores

in 2008-09. This implies an increase of

59.0% in terms of quantity and 123.2% in

terms of value over 2008-09. Import of raw

jute has also increased. Volume of import

of raw jute during 2009-10 stood at 82.9

thousand MT valued at Rs.197.4 crores

as against 59.0 thousand M.T. valued

at Rs.89.00 crores. Thus, import of raw

jute both in terms of quantity and value

have increased by 40.5% and 121.7%

respectively. Import of jute goods during

2011-12 (April/Aug) has also increased by

63.4% to 48.7 thousand M.T. as against

29.8 thousand M.T. in the corresponding

period of last year. Import of raw jute has

also increased substantially by 809.7%

to 93.7 thousand M.T. as against 10.3

thousand M.T. during the last year.

Trends in the import of jute goods and raw

jute is given at table 6.10.

PRICE SITUATION OF RAW JUTE

2009-10

In the 2009-10 season, due to a very

small carryover stock of around 8.0 lakh

bales and moderate production of 90.0

lakh bales, the ruling market prices of raw

jute prevailed much higher than the MSP

in all jute growing states right from the

beginning. In the month of September,

2009 the ruling prices came down from

Rs.2801/- per quintal to Rs.2046/- per

quintal due to arrival of the new crop.

Thereafter, the prices showed an

increasing trend due to the feeling that the

actual crop would fall short of estimates

and it reached Rs.3308/- per quintal at

the end of July, 2010. There was a strike

in jute mills in West Bengal from 14-12-

2009 to 12-02-2010. Due to this strike, a

total quantity of around 15.0 lakh bales

have been consumed less. Despite the

strike in jute mills, there was no sign of

decreasing trend in the price of raw jute

as jute mills kept on purchasing raw jute

in anticipation of further rise in price after

the strike.

71


(A)

Table 6.10

ministry of textiles

Quantity in ‘000’ MT

Value Rs. In Crores

(Apr- Mar)> 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value

Raw Jute 136.22 189.77 94.36 150.31 171.80 196.72 59.0 89.00 82.9 197.4

Jute Products 77.02 172.56 60.93 171.63 57.68 138.09 70.94 202.99 112.8 453.2

Total 213.24 362.33 155.29 321.94 229.48 334.81 129.98 291.99 195.7 650.6

% change 80% 126% -27% -11% 47.8% 4.0% -43.3% -12.7% 50.6% 122.8%

over last year

(B)

ITEM

2010 2011

APRIL-AUGUST AUGUST

Qty. (in’000’MT) Value (Rs. In Crores) Qty. (in’000’MT)

%

Change

over

Last year

2010 2011

%

Change

over last

year

2010 2011

%

Change

over last

year

Raw Jute 10.3 93.7 809.7% 28.5 253.4 789.1% 4.2 13.9 230.9%

Jute Products

29.8 48.7 63.4% 129.3 215.4 66.6% 8.9 9.1 2.2%

TOTAL 40.1 147.4 267.6% 157.8 468.8 197.1% 13.1 23.0 75.6%

2010-11

The 2010-11 season started with a

carryover of 12 lakh bales and a drought

like situation occurred in a number of

jute growing districts in West Bengal and

Bihar. There was a shortage of high grade

jute due to a shortage of water available

for retting. The season began with a price

of Rs.3005/- per quintal and went upto

Rs.3377/- per quintal in the month of Nov,

2010. Thereafter, the prices came down

marginally and reached Rs.2724/- per

quintal at the end of jute season.

2011-12

The season started with a huge carryover

stock of 18.0 lakh bales and the crop

for the year was estimated at 110.0 lakh

bales. The price of raw jute recorded at the

beginning of the season was Rs.2475/-

per quintal. As the crop started arriving in

the market, the prices have gone down.

At the end of November, 2011, the price

ruled at Rs.2079/- per quintal.

INCENTIVES TO THE JUTE

SECTOR

A) FIXATION OF SUPPORT PRICE AND

THE PROCUREMENT OF RAW JUTE

UNDER MSP:

Purchases made under MSP and

commercial operation during the last

several years by the Jute Corporation of

India are given at table 6.11.

The minimum support price is fixed by the

Govt. on the basis of recommendations

of the Commission for Agricultural Costs

and Prices (CACP). As per CACP reports,

while formulating the agricultural price

72


annual report 2011-12

Table 6.11

FIXATION OF SUPPORT PRICE AND THE

PROCUREMENT OF RAW JUTE UNDER MSP

Procurement (Qty: In ‘000’ Bales)

Year Support Comml. Total

1999-00 18 89 107

2000-01 464 0 464

2001-02 246 0 246

2002-03 1314 0 1314

2003-04 1118 0 1118

2004-05 352 0 352

2005-06 0 141 141

2006-07 136 348 484

2007-08 756 0 756

2008-09 103.7 0 103.7

2009-10 0 0 0

2010-11 0 34.4 34.4

2011-12

(Upto 29-

11-11)

44.5 0 44.5

policy CACP takes into account various

factors such as cost of production, over

all demand/ supply situation, domestic

level and international prices and effect of

minimum support price on general price

level.

CACP every year also conducts meetings

of all stake holders to decide minimum

support price. The MSP announced by

Govt. of India from 2002-03 to 2011-12

are given at table 6.12.

B) Continuation of Jute Packaging

Material (Compulsory Use in Packing

Commodities) Act, 1987 keeping in

view the interest of raw jute growers

and workers involved in the jute

industry.

The level of reservation recommended

by the Central Government from

Year

Table 6.12

MSP of TD-5

grade of raw jute

Ex-Assam (Rs./

Quintal)

% age increase

over

previous

year

2002-03 850 4.9

2003-04 860 1.2

2004-05 890 3.5

2005-06 910 2.2

2006-07 1000 9.9

2007-08 1055 5.5

2008-09 1250 18.5

2009-10 1375 10.0

2010-11 1575 14.5

2011-12 1675 6.3

July 2006 to August 2010 is given at

table 6.2.

C) Duty Entitlement Pass Book (DEPB)

benefits to Jute products (Table 6.13

& 6.14)

D) Technology Upgradation Fund

Scheme (TUFS) :

The scheme provides the focal point for

modernization efforts through technology

upgradation in the jute industry. The

cumulative position of sanction and

disbursement under TUF as on 30.6.2010

is given at table 6.15.

E) Jute Technology Mission

The Jute Technology Mission [JTM]

spanning a period of 5 years has been

launched by the Government of India

w.e.f. the financial year 2007-08. The

Jute Technology Mission with a total

outlay of Rs. 355.5 crores has four

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ministry of textiles

Sl.

No.

Table 6.13

Product Group: Miscellaneous Products

Product Code:90

Description DEPB Rate(%) Value Cap

24 Jute Soil Saver 5.0 --

25 Jute Yarn/Jute Twine 4.0 --

26 Hessian cloth

Hessian Made-Up

27 Sacking cloth

Sacking Made-Up

5.0

5.0

6.0

6.0

Table 6.14

Product Group: Plastics

Product Code: 63

Sl. No. Description DEPB Rate (%) Value Cap

Rs.40/ Kg

Rs.55/Kg

Rs.30/Kg

Rs.40/Kg

34. Hessian bags with LDPE/HDPE/PP

Liner/Lamination and with/Without

Zipper/Handle

37. Jute Bags with LDPE/HDPE/PP

Liner/Lamination and with/

Without Zipper/Handle

83. PVC fabricated bags (made from

PVC leather cloth backed jute

And polypropylene

3.00 Rs.175/Kg

3.00 Rs. 175/Kg

5.00 --

116. Poly Jute Bags 3.00 Rs.40/Kg

589. Textile Machinery 7.0 Rs. 7.0 Lakh

519. Sewing Machinery 4.0

No. of

Applications

Received

Total

cost of

projects

Amount of

Loan

Required

Table 6.15

Rs. In crore

Sanctioned Disbursed

No. of

Applications

Amount

No. of

Applications

Amount

56 542.20 410.85 56 405.84 56 395.48

Mini Missions pertaining to agriculture

research and seed development,

agronomic practices, harvest and

post harvest techniques, primary and

secondary processing of raw jute,

diversified product development and

marketing and distribution.

The Jute Technology Mission has been

divided into four Mini Missions and the

implementing agencies of each Mission

are given at table 6.16.

Details of activities of four Mini Missions

are given below:

Mini Mission-I

In order to increase the yield of jute and

mesta, some new breeding methods

74


annual report 2011-12

Table 6.16

Rs. In lakhs

and techniques have been adopted as

under:

i) Plant type breeding, ii) Heterosis

breeding, iii) Resistance breeding & iv)

Quality breeding.

In addition to conventional breeding,

mutation breeding, inter-specific crosses

and biotechnological approaches will also

been explored. The following activities

have also been undertaken:-


Mission Implementing Agencies Fund Allotted

Mini Mission-I Ministry of Agriculture (ICAR) 705.18

Mini mission-II Ministry of Agriculture (DARE) 4990.04

Mini Mission-III Ministry of Textiles (JCI) 6458.00

Mini Mission-IV Ministry of Textiles (NJB) 23,402.00

Total 35555.22

Low cost Technology for development

of suitable agronomic practices for

maximizing income from jute vis-à-vis

other crops in the cropping system as

a whole.

Bio-mass level- while developing the

technology the biomass level of the crop

should be kept in mind so as to ensure

growth with stability of the micro-economy

of the farmer. The total funds allotted for

MM-I are Rs. 705.18 lakhs.

Mini Mission-II

In order to achieve the best of production

and management of technologies for

jute and allied fibres crop and their post

harvest technology to accelerate the

production and quality improvement of

the crops the following activities have

been adopted:

i) System approach,

iv) Frontline Demonstration,

v) On Farm Package Demonstration,

vi) Industry-Agriculture Linkage,

vii) Application of Bio-technology tools to

improving retting efficiency,

viii) Planning and implementation of

Development Programme,

ix) Special Programme for finer fibre and

x) Integrated Jute Cultivation.

The total funds allotted for MM-II are Rs.

4990.04 lakhs

Mini Mission –III

Upgradation of infrastructure for:

i) Weighment facility,

ii) Sale within Market facilities,

iii) Auction/Sale Platforms, sheds,

Assortment sheds, Baling Presses,

Bale Godown etc. Construction of 20

Market Yards @ Rs. 100 lakh each,

40 DPCs at the cost of Rs. 110 lakh

each and 50 Retting Tanks at the cost

of Rs. 10 lakh each etc.

Organizational infrastructure:

i) Market linkages,

ii) Market information system,

iii) Bank Credit option to prevent distress

sale.

The total funds allotted for MM-III is

Rs. 6,458.00 lakhs.

ii)

Adaptive Research of farm Trials,

iii) Strengthening Research- Extension

Linkage,

Mini Mission-IV

i) Modernization & Technological

upgradation,

75


ministry of textiles

ii) Improvement of productivity Quality

management,

iii) develop human resources for the jute

industry,

iv) Designing & developing of Jute

Diversified Products (JDPs),

v) Help NGOs for JDP development,

vi) Commercialization of Technology for

JDP and

vii) Jute parks for Jute Diversified

Products (JDP).

The total funds allotted for MM-IV are Rs.

23, 402.00 lakhs.

The progress of the schemes is satisfactory

at present. The physical progress of the

schemes under Mini Mission – IV of JTM

got slightly affected in the initial period as

the start of the implementation processes

was delayed due to some procedural /

administrative reasons, viz, drafting of

the scheme parameters and “Operating

Manuals”, interactions with the members

of the industry and other jute interests, in

eliciting their views / comments, acceptance

of the scheme components, etc. and

finally consideration and approval of the

“Operating Manuals” by the Ministry. The

implementation effectively commenced in

2008-09 onwards, but the progress was

again hindered by the prolonged strike

in the jute industry in 2009-10. Further,

most of the Schemes under Mini Mission

IV were back-ended – which indicates

that the maximum utilization of fund and

the achievements can be recorded and

would be visible by the end of the Mission

period.

The Standing Committee on Labour

[15th Lok Sabha] on the “Development

of Jute Sector”, in appreciating the initial

constraints encountered in implementation

of JTM and considering the significance

of the Mission for the revival of Jute

Sector, recommended that JTM be further

extended to the 12 th Five Year Plan and

instead of setting cumulative targets for five

years, yearly targets be fixed under each

scheme for their effective implementation.

The continuation of JTM for a further period

of 2 (two) years is presently under active

consideration of the Government.

Till 30 th September, 2011, the

achievements under Mini Mission IV,

both physical and financial, were more

than 50%. However, to summarise, NJB

has utilized Rs.141.46 crore or 60.45%

of the total Mission period outlay of

Rs.234.02 crore.

SCHEMES UNDER MINI MISSION

IV OF JTM BEING IMPLEMENTED

BY THE NATIONAL JUTE BOARD

[NJB] (Table 6.17)

Sl.

No.

Table 6.17

NAME OF THE SCHEMES

6. SCHEMES FOR MODERNISATION OF

ORGANISED JUTE MILLS

1 Training of Workers & Supervisors

2 Machinery Development

3 Productivity Improvement & TQM

Facilitation

4 Acquisition of Machinery and Plant (subsidy

component @ 20%)

7. SCHEMES FOR PROMOTION OF JUTE

DIVERSIFICATION

1 Design and Development of JDP

2 For helping the NGOs and Women Self

Help Groups (WSHGs) for developing jute

diversified products

3 Scheme for Promotion of Jute Diversification

4 Scheme for Commercialisation of

Technology

5 Scheme for setting up Jute Parks for the

Diversified sector

76


annual report 2011-12

STATUS OF IMPLEMENTATION OF

SCHEMES UNDER MM-IV OF THE

JUTE TECHNOLOGY MISSION AS

ON 30 TH SEPTEMBER, 2011

PHYSICAL

Scheme 6.1 : Sustainable Human

Resource Development in Jute Mill

Sector

● Training has been imparted to

18,071 Master trainers, Supervisors,

Maintenance Workers and other

Workers in 39 jute mills.



The Master Trainers and Supervisors

have already trained a further 7620

workers in 16 mills.

Institute of Jute Technology has

developed 21 audio-visual modules

on different process of production as

training aid for sustainable training in

the jute mills.

Scheme No. 6.2 : Development of Jute

Mill Machinery





Scheme No. 6.2 of JTM takes

care of Machinery Development in

the jute industry and the status of

implementation is as follows :

Out of five, four processing machines

namely Composite Card, Drawing,

Spinning & Weaving are under

development in CJMD.

Concept testing is carried out for

carding machine.

Prototype development of 5 modern

technology machines have been

undertaken under “Centre for Jute

Machinery Development (CJMD)

and initial design and development of

“Chain-gill Finisher Drawing Frame”

is under process.


2 machines, viz. Rotating Spindle

Spg. Frames [Type II (8.5 – 14 lbs]

and S4 Type Loom [Weaving] –

Shuttle-less developed under the

Scheme are under the process of

commercialization.

● The proposal for development

of Electronic & Microprocessor

Based Integrated instruments

for “Development of Integrated

Equipments for Jute Grading System”

under ISMDCP was assigned to

National Institute of Research on

Jute and Allied Fibre Technology

(NIRJAFT), Kolkata.

Scheme No. 6.3 : Productivity

Improvement & TQM Facilitation

The scheme to improve productivity and

to establish Total Quality Management

(TQM) facilities in the jute industry has

been provided under Mini Mission – IV of

the JTM with NJB as facilitating agency

of the scheme. The identified areas of

operation of Productivity Improvement &

TQM Facilitation are






Total Quality Management,

Energy Management

Waste Management

Maintenance Management

Work Study & Ergonomics.

To facilitate these studies, NJB has

engaged 4 National level reputed

Agencies / Institutions to conduct the

studies under the scheme and implement

recommendations in selected 6 jute mills.

After completion of diagnostic studies,

corrective implementation plans have

been finalized in consultation with the

respective jute mills. Implementation of

the corrective measures has started in

the 5 Jute Mills.

77


ministry of textiles

TQM studies were completed in 6 jute

mills [5 in West Bengal and 1 in Andhra

Pradesh] and in 6 Jute Diversified Product

units in Kerala. Recommendations are

under implementation.

Scheme No. 6.4 :Modernisation &

Upgradation of Technology in Jute Mills-

Capital Subsidy


The upper limit of the subsidy has

been raised to Rs. 350 lakhs per mill

for the existing units and Rs.400 lakhs

for mills at North Eastern States and

for setting up new units.

● Since inception (1st March, 2007),

208 claims were settled and subsidy

of Rs.54.88 crores (out of approved

fund of Rs.80 Crores) has been

released against investment for

modernization of Rs.274.42 crores

all over India.




77.57% of the investments have

been for Mill-side machinery meant

for preparatory to spinning and

winding processes. 14.24% of the

investments have been for weaving to

finishing processes of manufacturing.

Remaining 8.19% was for Material

handling and other miscellaneous

machinery.

84 units have so far availed the

benefits under the scheme, which

included 61 composite jute mills, 18

yarn & twine mills, 2 diversified jute

product units, 2 weaving unit and one

under Jute Park Scheme [Scheme

7.5].

State-wise – West Bengal 61 units,

Andhra Pradesh 9 units, Bihar 2

units, Haryana 2 units, Kerala 1 unit,

Orissa 2, NER (Assam) 6 units and

Chattisgarh 1 unit availed of the

benefits.

Scheme No. 7.1 : Design and

Development of Jute Diversified

Products [JDPs]

Scheme No.7.1 of JTM takes care of

Design and Development of JDPs.

Total 21 market driven R&D Studies

on different aspects, associated with

the Design and Development of JDPs,

have been awarded to the following

institutions:

● Indian Institute of Technology,

Kharagpur – 7 studies.

● South India Textile Research

Association, Coimbatore – 2 studies.




National Institute of Research on Jute

and Allied Fibre Technology, Kolkata

– 1 study.

Indian Jute Industries Research

Association, Kolkata – 6 studies.

Institute of Jute Technology, Kolkata

– 4 studies.

● Northern India Textile Research

Association – 1 study.

● The studies range between 36-

60 months each. NJB monitors

the progress and marketability of

the products and process under

development by organizing seminars

/ workshops / meetings regularly with

the stakeholders.


In addition, NJB engaged 11 agencies

(designers, institutes, entrepreneurs)

for undertaking need based design

development projects of jute

diversified products.

Scheme No. 7.2 : Helping NGOs &

Women Self Help Groups [WSHGs] for

developing JDPs

Scheme No. 7.2 of JTM takes care of

the need for helping Women Self Help

Groups [WSHGs], NGOs & other weaker

78


annual report 2011-12

sections of the society for developing Jute

Diversified Products (JDPs). The status

of implementation of the scheme since

inception is as follows :





46 NGOs have been identified.

258 Clusters developed.

13950 artisans of 872 WSHGs spread

in 88 districts of 18 States had been

imparted training on production of

JDPs.

531 Nos. machines were distributed

to 260 WSHGs

Scheme No. 7.3 : Scheme for Promotion

of Jute Diversification

Scheme No. 7.3 of JTM takes care of

the need for providing institutional /

infrastructural support to the budding

entrepreneurs comprising WSHGs,

NGOs and other weaker sections of the

society for developing JDPs. The status

of implementation of the scheme since

inception is as follows :






36 Jute Service Centres have been

established

30 Jute Raw Material Banks have

been established

1373 training programmes were

organized by Jute Service Centres

benefiting 26459 artisans.

301 JDP, WSHG units were set up.

138 machines were distributed to the

units developed by the Jute Service

Centres.

Scheme No. 7.5 : Setting up of Jute Parks

for the Diversified Sector



9 Jute Park proposals (6 in West

Bengal, 1 in Bihar & 2 in NER) have

been principally approved.

Setting up of 6 Jute Parks have

commenced (4 in West Bengal, 1 in

Bihar & 1 in NER).

STATUS OF IMPLEMENTATION OF SCHEMES UNDER MM-IV

OF THE JUTE TECHNOLOGY MISSION AS ON 30 TH SEPTEMBER, 2011

FINANCIAL:

Sl.

No.

SCHEMES

MISSION

TARGET

PERFORMANCE TILL 30.09.2011

Approved

Fund

for Total

Mission

Period

2007-

08

2008-

09

2009-

10

2010-

11

2011-12

(upto

30.09.11)

Cumulative

TOTAL

(30.9.11)

1 2 3 4 5 6 7 8 9=(4+5+6+7+8)

6 SCHEMES FOR MODERNISATION OF ORGANISED JUTE MILLS

6.1 Training of Workers

& Supervisors

6.2 Machinery

Development

6.3 Productivity

Improvement &

TQM Facilitation

4.50 2.00 0.77 0.50 1.00 0.23 4.50

28.00 0.08 5.75 7.62 5.38 1.39 20.22

6.00 0.04 0.12 1.00 2.95 0.09 4.20

79


ministry of textiles

Sl.

No.

SCHEMES

MISSION

TARGET

Approved

Fund

for Total

Mission

Period

2007-

08

2008-

09

PERFORMANCE TILL 30.09.2011

2009-

10

2010-

11

2011-12

(upto

30.09.11)

Cumulative

TOTAL

(30.9.11)

1 2 3 4 5 6 7 8 9=(4+5+6+7+8)

6.4 Acquisition of

Machinery and

Plant (subsidy)

80.00 5.86 7.46 11.24 21.75 7.91 54.22

TOTAL (6) 118.50 7.98 14.10 20.36 31.08 9.62 83.14

7 SCHEMES FOR PROMOTION OF JUTE DIVERSIFICATION

7.1 Design and

Development of

JDP

7.2 For helping the

NGOs and Women

Self Help Groups

(WSHGs) for

developing JDPs

7.3 Scheme for

Promotion of Jute

Diversification:

7.4 Scheme for

Commercialisation

of Technology

7.5 Scheme for setting

up Jute Parks for

the Diversified

sector

14.00 2.20 2.56 1.52 1.98 1.30 9.56

17.00 0.38 1.52 1.79 3.15 1.79 8.63

23.52 1.97 5.21 4.91 4.79 1.82 18.70

1.00 0.00 0.00 0.00 0.00 0.00 0.00

60.00 0.06 0.83 1.50 13.31 0.12 15.82

TOTAL (7) 115.52 4.61 10.12 9.72 23.23 5.03 52.71

Total Mini Mission-

IV (Schemes)

Administrative/

Monitoring

Expenses

234.02 12.59 24.22 30.08 54.31 14.65 135.85

0.35 0.97 1.58 2.03 0.68 5.61

Total Mini

Mission-IV

234.02 12.94 25.19 31.66 56.34 15.33 141.46

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annual report 2011-12

Each of the schemes under Mini Mission

IV of JTM (as implemented by the National

Jute Board) is evaluated and monitored

continuously through three-tier system–

(i) Evaluation and Monitoring Committee

of each of the sub-scheme, which

meets at periodical intervals. (ii) Project

Management Committee chaired by the

Jute Commissioner, Govt. of India - which

monitors progress of implementation of

different schemes under Mini Mission

IV of the Jute Technology Mission and

(iii) Empowered Committee (the Apex

Monitoring Body of JTM) chaired by the

Secretary, Ministry of Textiles, Govt. of

India and Chairperson, National Jute

Board – which considers the status

of implementation of the entire Jute

Technology Mission and approves the

courses of action recommended by the

Project Management Committee.

The 3-tier monitoring mechanism in place

as above exercises constant and strict

vigil and surveillance over implementation

of different schemes under Mini Mission

IV of JTM.

In addition, at the instance of the

Government, National Jute Board engaged

M/s ICRA Management Consulting

Services to conduct a Study on Mid-Term

Evaluation of Schemes under Mini Mission

IV of the Jute Technology Mission.

The mid term evaluation considered the

project’s continued relevance, efficiency

levels, and effectiveness. In addition, the

evaluation provided recommendations

to improve the execution and thus the

likelihood of achieving its development

objectives.

In evaluating the overall status of

implementation of the Schemes, the

agency recommended as follows:-

“Most of the Schemes in the Mission have

just started yielding results and benefits

for the jute mills and for the jute diversified

sector. In some cases, the results are

already visible, while in others, results

will become visible on the completion of

the Schemes. As per our discussions with

different stakeholders in the Scheme,

we recommend that the Schemes be

continued for another term to benefit a

wider section of the industry.”

STATUS OF IMPLEMENTATION OF

SCHEMES UNDER THE NON-PLAN

FUNDING

i) Subsidy Scheme for Distribution of

Certified Seeds

With intensive interaction had with the

farmers in the matter of distribution of

certified seeds – during 2009-10, total

4375.80 quintals of certified seeds were

distributed at a subsidy of Rs.40/- per

KG under the scheme. During the year

2010-11, the target was fixed at 13,600

quintals against similar subsidy. Out of

the target for distribution fixed, till date

6,600 quintals of certified seeds were

distributed at a subsidy of Rs.40/- per KG

under the scheme. The network of the

Jute Corporation of India is being utilized

for implementation of the scheme.

ii) Scheme for Jute Farmers’

Information and Testing Centres

Identification and setting up of 50 Farmers’

Information Centres, imparting training to

80 groups of 50 farmers each, organization

of 2 Farmers’ School to encourage

and educate the latest technological

advancements in seed production and

farming practices have been planned in

2010-11 under non-plan for promoting

raw jute supply stability.

iii) Scheme for Support Supply Chain

and Bulk Supply of JDPs

Financial assistance is extended to jute

entrepreneurs to ensure supply chain

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ministry of textiles

and bulk supply of JDPs for selective

and mass consumptions. This assistance

is aimed at meeting increasing demand

for jute shopping bags and other JDP’s

arising mainly due to restrictions on the

use of plastic, and thereby supporting

the cause of health of environment.

Till date, 53 applications for opening of

retail outlets have been received from 31

jute entrepreneurs. NJB has accorded

approval to opening of 10 retail outlets at

Bangalore, Chennai, Agra, Bhubaneshwar

and Kolkata.

iv) Fast Track Schemes for Export

Market Development of JDPs.

Marketing assistance is extended to the

exporters for participation in different

promotional events of the National Jute

Board under Fast Track Export Market

Development scheme. During 2010-11,

NJB received 180 EMDA applications

from 58 exporters, settled 99 applications

and released Rs.140.64 lakhs to 44

exporters for their participation in 42

events. During 2011-12, NJB has received

100 applications from 64 exporters for

participation in 36 events and disbursed

(till 30 th September, 2011) Rs.42.85 lakh

to 28 exporters against 35 applications for

participation in 10 events.

v) Schemes for Workers’ Welfare in

Jute Sector.

National Jute Board [NJB] provides

assistance for the welfare of workers in

jute-producing units both in jute mills and

in small units producing JDPs. NJB utilise

non-Plan funds to improve :-

(a) the sanitation, health facilities and

working conditions in the mill sector

and

(b) provide incentives to the small and

medium JDP units for compliance

with prescribed working conditions.

This Workers’ Welfare Scheme therefore

has 2 broad sub-schemes, one for the

mills and one for the small sector. In

both cases, proposals from mills or JDP

units are prepared by the management

in consultation with the accredited

unions.

Component I – Mill Sector

Sanitation facilities

This is a scheme to provide hygienic

sanitary facilities for mill workers and

their families, first in the mill quarters

and in the second stage in the working

areas. Sanitary facilities include designed

sanitary blocks with toilet facilities for

men and women, wash basins, sewage,

etc. In order to speed up the process of

construction contracts are allotted to thirdparty

tie-up with M/s Sulabh International

or such other reputed organizations

especially those agencies which may have

a government dispensation exempting

them from participation in tender. The

concerned mill first incurs the expenditure

and National Jute Board thereafter

reimburse 90% of the costs subject to a

maximum reimbursement of ` 20.00 lakh,

subject to submission of claim along with

accounts and vouchers and physical

verification of the facility.

Component II – JDP / small &

medium sector

Incentive for Social Audit

All authentic international, multi-national

and national big stores require, as per

respective country-law, audit certificate

before or for placing orders on the

manufacturers of lifestyle jute products

which are manufactured by the MSEs in

the Informal Sector of Jute. Hence, export

oriented MSEs in the Informal Sector of

jute shall conduct such Social Audits.

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annual report 2011-12

Social audit is undertaken annually by the

Firms like SGS, SEDEX, INTERTEK, STR

LABs and the ISO certifying firms mainly

under the following major heads:-

1. Child Labour.

2. Minimum Wages.

3. Social Security – ESI/P.F./Gratuity.

4. Working Hours.

5. Occupational Safety & Health Care.

6. Waste Disposal.

7. Non-discrimination.

8. Freedom of negotiation and formation

of group or union.

NJB provides 50% of the cost of annual

compliance audit for each registered unit

subject to a maximum of ` 1,00,000/- per

unit per year.

*****

83


84

ministry of textiles


annual report 2011-12

CHAPTER VII

SERICULTURE & SILK

INDUSTRY

85


86

ministry of textiles


annual report 2011-12

CHAPTER VII

SERICULTURE & SILK INDUSTRY

India continues to be the Second largest

producer of silk in the World. Among

the four varieties of silk produced, as

in 2010-11, Mulberry accounts for 80.2%

(16360 MT), Eri 13.5% (2760 MT), Tasar

5.7% (1166 MT) and Muga 0.6% (124MT)

of the total raw silk production in the

country.

Sericulture is an important labourintensive

and agro-based cottage

industry, providing gainful occupation to

around 7.25 million persons in rural and

semi-urban areas in India. Of these, a

sizeable number of workers belong to the

economically weaker sections of society.

There is substantial involvement of women

in this Industry.

In the Fifth year of the XI Plan i.e.,

2011-12, the provisional production

data received up to April – December

period, it is seen that the production of

mulberry raw silk increased by 11.8% (to

13080 MT) compared to the production

of 11696 MT in the same period of the

previous year (2010-11). Vanya raw

silk production was increased by 4.0%

(2170 MT) during April – December

period of the year 2011-12 as compared

to the production of 2087 MT during the

same period of the year 2010-11.

Table 7.1

Physical Targets and achievements during XI plan

Physical Progress

SL.

No

Particulars

XI Plan

Target

(2007-12)

2010-11 2011-12 2012-13

Achieve

ment

Anticip ated Achiev

ement

Target

(XII Plan)

I. Mulberry Plantation

2.18 1.70 1.97 2.05

(Lakh ha.)

II. Production of Raw Silk (in M.T)

(a) Mulberry

BV 5000 1400 1805 2100

CB 18000 14960 16590 16635

Sub Total 23000 16360 18395 18735

(b) a) Tasar 420 1166 1782 1830

b) Eri 2390 2760 2926 3160

c) Muga 190 124 127 130

Sub Total 3000 4050 4835 5120

Grand Total (a+b) 26000 20410 23230 23855

III. Cumulative Employment

77.04 72.5 75.60 79.00

(Lakh persons)

IV. Exports (Crores `) 4500 2863.76 3630 4065

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ministry of textiles

III. THE SCHEMES/PROGRAMMES

OF CENTRAL SILK BOARD

The Plan programmes for development

of Sericulture and Silk Industry in India,

carried out through Central Silk Board,

are broadly classified at table 7.2.

Sl.No.

Table 7.2

Major Programmes of CSB

1 R&D / Transfer of Technology / Training /

IT Initiatives (CS)

2 Seed Organisation and HRD (CS)

3 Quality Certification Systems (CS)

4 Catalytic Development Programme (CSS)

CS: Central Sector Scheme CSS: Centrally

Sponsored Scheme

1. a). RESEARCH AND DEVELOPMENT

The main Research & Training Institutes

of the CSB provide R&D and Training

support for the development of sericulture.

The institutes at Mysore (Karnataka)

Berhampore (West Bengal) and Pampore

(J&K) deals with mulberry sericulture.

One at Ranchi (Jharkhand) deals with

Tasar culture. The institute established

at Lahdoigarh, Jorhat (Assam) deals with

Muga and Eri culture. Regional Sericulture

Research Stations (RSRS/RTRS/RERS)

for mulberry and non-mulberry has

been functioning for adoptive Research,

refining and dissemination of the research

findings and of tackling the regional field

issues of the industry. Besides, a network

of Research Extension Centre (RECs)

& its sub units for mulberry and non

mulberry are also functioning to provide

extension support to sericulturists. In

order to provide R&D support in post

cocoon sector, the Board has established

a Central Silk Technological Research

Institute (CSTRI) at Bangalore. In

addition, the CSB has also set up a

Silkworm Seed Technology Laboratory

(SSTL) in Bangalore (Karnataka), a

Central Sericultural Germplasm Resource

Centre (CSGRC) at Hosur (Tamil Nadu)

and a Seri-Biotech Research Laboratory

(SBRL) at Bangalore.

During 2011-12, 40 Research projects

are continued. Further, 29 new research

projects were initiated. Against a target

of 30 Research Projects scheduled to be

completed, 23 projects have already been

concluded (up to November 2011) and

remaining 7 projects will be concluded by

March 2012.

1 b). TRANSFER OF TECHNOLOGY

In order to increase productivity and quality

of silk, a chain of Research Extension

Centres are engaged for transfer of

technologies from Research Institutes to

the field.

1. c). TRAINING

The CSB organizes a number of training

programmes at its Research and Training

Institutes. The total number of persons

trained under different courses during

2011-12 (up to November, 2011) is

detailed at table 7.3.

1. d). IT INITIATIVE:

Under the IT initiatives, in XI Plan, CSB

concentrated on software development

by using contemporary technologies and

networking of various cocoon and silk

markets with free flow of information on

the availability of the raw material, market

trends, etc. on its websites. Information

required for traders, buyers, and other

stakeholders shall be hosted on the

web and improves upon the interactive

interface of website.In addition, facilities

like on-line subscription to scientific

e-journals (which will be available for

access to entire CSB scientists), on-line

submission of research progress reports,

video conferencing among Research

Institutes of CSB, etc. will be created.

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annual report 2011-12

Sl.

No.

Particulars 2011-12

(up to November

2011)

Table 7.3

No. of persons

anticipated to be

trained by the end

of 2011-12

1 Structured Course 32 32 DOS/NGO

Category

2 Capsule Course 337 500 CSB/DOS / NGO

3 Adhoc Training &

Skill Development

4 Entrepreneurship

Development

& Management

Development

Programmes

587 4512 Students/ Staff/ Entrepreneurs

/ Farmers

311

(10 programmes)

821

( 20 programmes)

TOTAL 1267 5865

a). Resource Development

Programme

b). Management Development

Programme

c). Technology Up-gradation

Programme

2. SEED ORGANISATION ( SILKWORM

SEED PRODUCTION AND SUPPLY)

Under National Silkworm Seed

Organization (NSSO) a network of 19

Basic Seed Farms (BSF) produce and

supply the basic seed for production of

commercial silkworm seed in the seed

production centres functioning under CSB

and State Departments. 19 Silkworm

Seed Production Centres (SSPCs) are

functioning under NSSO in different States

to support the industry. Similarly, on the

tasar side, the CSB has established 21

Basic Seed Multiplication & Training

Centres (BSM&TC) and one Central Tasar

Silkworm Seed Station (CTSSS) for supply

of tropical tasar basic seed & 1 oak tasar

grainage and 3 REC-Cum-BSM&TCs for

supply of oak tasar basic seed. Under

muga sector, 8 Basic Seed Farms and

1 Silkworm Seed Production Centre are

functioning. For production and supply of

eri seed, CSB has established 5 Silkworm

Seed Production Centres.

Emphasis was given towards production

of quality dfls by adopting Quality

Management System in seed production

under ISO 9001:2008 certification in

18 SSPCs. During 2011-12 four more

SSPCs are to be covered under ISO

certification.

The details of progress achieved by the

units during 2011-12 (up to Dec., 11) is

given at table 7.4.

3. IMPLEMENTATION OF CENTRALLY

SPONSORED SCHEME (CSS)

VIZ. CATALYTIC DEVELOPMENT

PR0GRAMME (CDP) DURING XI PLAN

CSB, being a Science and Technology

(S&T) based Research and Development

organization, the main thrust has been

on Research based activities. The

Board is covering areas like Research

and Technology Development, Seed

maintenance & production and

Development of Sericulture & Silk

Industry.

During X Plan, Catalytic Development

Programme (CDP) was implemented in

collaboration with states with an aim to

promote adoption of improved technology

practices developed by the Research

Institutes of CSB. The broad objectives of

the CDP are technology absorption, quality

up-gradation, investment generation,

productivity improvement and employment

generation.

89


Sl.

No.

Particulars

Achievement

during

2010-11

Table 7.4

Target

Achievement during 2011-12

Achievement

during

April-

Dec, 11

ministry of textiles

Anticipated

January, to

March, 2012

(Dfls in lakh nos.)

Anticipated

(upto

March, 2012)

1 Mulberry

a. Basic seed 9.87 9.93 8.20 1.73 9.93

b.Commercial seed 293.42 315 213.71 101.29 315

2. VANYA

a. Basic seed

i. Tasar 31.91 32.59 35.08 - 34.55

ii. Oak Tasar 1.31 2.37 1.33 1.04 2.37

iii. Muga 1.20 2.05 1.80 0.25 2.05

iv. Eri - 0.37 -

b.Commercial seed

i. Muga 1.54 0.50 0.39 0.11 0.50

ii. Eri 2.59 2.75 2.40 0.35 2.75

The components under the Catalytic

Development Programme envisage

development and expansion of host

plantations, development of farm and

post-cocoon sector infrastructure, upgradation

of reeling and processing

technologies in silk, enterprise

development programme, support for

extension & publicity etc.

Outlay approved for XI Plan

The total cost for implementation of

the CDP during the XI Plan is pegged

at Rs.1527.97 crores of which CSB’s

share is Rs.821.74 crores (Revised Cost

Estimates). Against the Central Share an

expenditure of Rs. 576.51 Crore has been

incurred till 2010-11. During 2011-12 an

amount of Rs. 130.47 Crore has been

released/ spent towards implementation

of various schemes / components under

CDP against the allocation of Rs. 245.23

Crore.

Important achievements made so far

under CDP during the XI plan are given

at table 7.5.

Major Achievements made under CDP

during the last three years (2008-09 to

2010-11) and during 2011-12 of the XI

Plan are given at table 7.6.

4. QUALITY CERTIFICATION SYSTEMS:

One of the main objectives of the Quality

Certification System is to initiate suitable

measures towards strengthening quality

assurance, quality assessment and

quality certification. Under the scheme,

two components viz. “Cocoon Testing

Units” and “Promotion of Silk Mark” are

being implemented:

a) ESTABLISHMENT OF COCOON

TESTING UNITS

In order to facilitate cocoon testing in

different cocoon markets of the country

an amount of Rs. 1.00 lakh ( unit cost) is

provided towards procurement of testing

equipments. It is proposed to establish

25 such Units during XI plan. The entire

assistance is provided by Central Silk

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annual report 2011-12

Sl.

No.

Table 7.5

Important achievements made so far under CDP during the XI Plan are given below:

Details Unit XI Plan

Target

Achievement

(as on Dec-2011)

1

Support to farmers for the construction of

Rearing Houses

No. 67,409 53270

2 Drip Irrigation Ha. 27,715 20,337

3 Chawki Rearing Centre No. 397 298

4 Rearing Equipment support to farmers No 68,030 48773

5 Support to TasarRearers Ha. 20,369 19283

6 Start-up tools to Erirearers Acres 19,218 13,089

7 Support to MugaRearers Acres 11,071 10,970

8

Support to Vanya Private Garineurs (Tasar

and Muga)

No. 4,353 4,763

9 Incentive for bivoltine production MTs of silk 1,632 1,421

10 Quality Linked Cocoon and Yarn Market

No. of states

covered

25 38

11

Improved reeling and spinning devices in

Vanya Silk

No. of Units 10,545 8,889

Sl.

No.

Table 7.6

Components 2008-09 2009-10 2010-11

(till March-

2011)

2011-12

(till Dec-

2011)

1 Development of Mulberry Plantation (Ac) 14524 19980 30,524 101,127

2 Irrigation for Mulberry (Ha.) 4541 4247 7729 610

3 Mulberry Rearing houses (Nos) 7760 11006 19292 6470

4 Chawkie Rearing Centres (Nos) 107 66 77 -

5 Rearing equipments (Farmers) 7272 11216 24847 -

6 Tasar plantation maintenance (Ha.) 2295 3769 10,220 1789

7 Tasar seed rearers (Nos) 732 2074 4,872 2671

8 Support to Tasargraineurs (Nos) 281 704 1,378 1259

9 Construction of Cocoon Storage Houses (Nos) 68 304 584 504

10 Eri host plantation (Acres) 1268 2199 3,665 3735

11 Construction of Eri Rearing House (Nos) 2069 4,002 6,502 4630

12 Muga food plantation (Acres) 853 2281 3,062 2804

13 Support for MugaGraineurs (Nos) 60 276 597 72

14 Automatic Silk Reeling Machines (Nos) 3 2 - -

15 Multiend Silk Reeling Machines (Nos) 53 30 91 16

16 Cottage basin reeling units (Nos) 14 15 45 13

17 Hot air drying chambers (Nos) 56 107 140 67

18 Vanya reeling/Spinng. Devices (Nos) 3007 1579 1982 545

19 Promotion of improved Handlooms (Nos) 742 1342 1571 2027

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ministry of textiles

Board. During the year 2011-12 a total of

5 units located in the state of Karnataka

and West Bengal of Procurement /

Establishment is under progress viz., at

Shirahatti/H.Cross/Vijayapura/Malavalli-

Karnataka, Khaliachack- WB.

b) SILK MARK ORGANIZATION OF

INDIA (SMOI)

The Ministry of Textiles-Govt. of India came

up with an initiative for the protection of

the interests of the consumers and other

stakeholders of the silk value-chain by

bringing out “Silk Mark” Scheme in June

2004. Silk Mark, the Quality Assurance

Label signifying that a product to which

it is affixed is made of pure silk was

launched by the Silk Mark Organisation

of India (SMOI), a registered Society

promoted by the Central Silk Board. Silk

Mark labels can be affixed to primary,

intermediate and finished products of silk

including yarn, fabric, sarees, made-ups,

garments, carpets, etc.

The Silk Mark Scheme is aimed at

protecting the interests of the users and

connoisseurs of silk, and for the generic

promotion of silk and also for building

brand-equity of Indian Silk.

Since the launch of Silk Mark in June

2004, over 1800 members have joined

the Organisation, of whom, more than

1700 have become Authorized Users.

More than 1.35 crore of Silk Mark labelled

products have reached the market for the

benefit of consumers.

During 2011-12 (up to November 2011)

168 members joined SMOI, of which, 157

members have enrolled as Authorised

Users and 16.12 lakhs of Silk Mark

Labelled products have reached the

market. During 2011-12 (upto November

2011) SMOI participated in as many

as 296 exhibitions/ Workshops/ Road

shows etc.

Anticipated achievement up to March

2012 is as follows:

1. Members – 300 Nos.

2. Authorised users – 300 Nos.

3. Sale of Silk Mark label – 30.00 lakhs

4. Awareness programmes / Workshops

/ Exhibitions / Road Shows etc. - 340

Nos.

Nineteen Silk Expos have been planned

during the year 2011-12 and 10 such

Expos have already been conducted at

various cities till November, 2011.

SCHEMES & PROJECTS BEING

IMPLEMENTED / PROPOSED TO

BE IMPLEMENTED BY CSB AND

STATES WITH EXTERNAL/ INTERNAL

ASSISTANCE FOR DEVELOPMENT OF

SERICULTURE:

EXTERNAL ASSISTANCE

1. PROJECT FOR ORGANIZING III

COUNTRY TRAINING PROGRAMME

ON BIVOLTINE SERICULTURE

TECHNOLOGY ASSISTED BY JICA

The Japan International Cooperation

Agency (JICA) and the Central Silk Board

(CSB) have jointly worked in technical

cooperation in the area of development

and popularization of Bivoltine Sericulture

Technology suited to Indian agro-climatic

conditions for past fifteen years.

Encouraged by the success of the

cooperation programme, Central Silk

Board in association with JICA has

implemented a third country training

programme on “Bivoltine Sericulture

Technology” during 2008-09 for some of

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annual report 2011-12

the Afro-Asian countries to disseminate

the knowledge and skills on bivoltine

sericulture technologies to these silk

producing countries and organized

training for 11 officers in ‘Administrative

Course’ and 15 officers in ‘Technical

Course’ nominated from 8 different

countries viz. Ghana, Cambodia,

Uganda, Nigeria, Kenya, Philipines, Laos

and Nepal.

JICA has extended the training

programme for 3 more years from 2009-

10. The number of officers trained under

Bivoltine Sericulture Technology is given

at table 7.7.

2. STATUS OF MANIPUR SERICULTURE

PROJECT

Govt. of Manipur in coordination with CSB

drafted proposal for the Phase-II of the

Manipur Sericulture Project at a total cost

of Rs 356.5 crores to be implemented in

seven years. The project is estimated

to add up 136 MT of Mulberry Silk and

96 MT of eri silk production / year at the

end of gestation period. Project focuses

on expansion of Mulberry in 1020 hectare

and Eri silk culture in 1500 hectare by

involving 7800 families in pre -and post

cocoon operations.

Department of Sericulture has approached

to Govt. of Manipur to fund the Phase-II of

the project under Special Plan Assistance

(SPA). Planning Commission as proposed

in the annual working group meeting (2011-

Sl.

No.

Table 7.7

12) has recommended Rs 62.11 cr. under

SPA for implementation of Phase-II. Govt.

of Manipur decided to make up shortfall

in SPA funding by approaching NABARD

under Rural Infrastructure Development

Fund (RIDF). Accordingly, Department

of Sericulture has revised the phasing of

physical and financial targets and sharing

pattern keeping all the original physical

& financial targets of Phase-II intact as

approved by MOT, Planning Commission,

DoNER, MHA, MEA and DEA of Govt.

of India.

State Planning Department has

sanctioned Rs 10.22 Cr under SPA.

Govt. of Manipur has also sanctioned

Rs 10.00 Cr under Rural Infrastructure

Development Fund (RIDF) of NABARD

to implement the project during 2011-12.

B. INTERNAL ASSISTANCE

1. Special SGSY PROJECTS FOR

DEVELOPMENT OF TASAR AND

ERI CULTURE IN BIHAR AND

JHARKHAND

Two special SGSY Projects for

development of Tasar and Eri culture are

being implemented in the States of Bihar

and Jharkhand with financial assistance

from Ministry of Rural Development, Govt.

of India from the year 2003-04.

The projects are being implemented in both

the States by Professional Assistance for

Development Action (PRADAN), an NGO.

Name of the Sub-course Target Achievement

2010-11 2011-12

1. Administrative Course ( Two Weeks) 15 13 13

2. Technical Course ( Twelve Weeks) 15 15 15

Total 30 28 28

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ministry of textiles

Financial outlay and sharing pattern of the

Project cost are given at table 7.8.

2. SPECIAL SGSY PROJECT FOR

DEVELOPMENT OF MULBERRY

SERICULTURE IN UTTARAKHAND

The Ministry of Rural Development,

Government of India has sanctioned a

project entitled “A Special SGSY Project

for Development of Mulberry Sericulture

in Uttarakhand” at a total cost of Rs.

917.840 lakh to be implemented by

Directorate of Sericulture, Govt. of

Uttarakhand over a period of 5 years

from 2007-08 to 2011-12. The funds

are shared by MORD (Rs.417.009 lakh)

and CSB/State share at Rs. 379.636

lakh, (CSB – Rs 299.383 lakh & State-

80.253 lakhs), Bank credit is Rs. 76.205

lakh and the beneficiary contribution is

Rs. 44.991 lakh.

Faritazadihi and Gajhipanchayats

of Chakai Block of Jamuiby creating

Tasar Sericulture based forward and

backward linkages for sustainable

livelihood development. Total outlay

of the project is Rs. 1274.91 lakhs, of

which NABARD, Patna is funding Rs.

837.72 lakhs (65.71%), CSB share of

Rs. 170.91 lakhs (13.41%), Beneficiary

share is Rs.217.29 lakhs (17.04%) and

Loan from NABARD amounts to Rs. 49

lakhs (3.84%), for a period of five years

starting 2009-10 with CDP funding

proposed only for the XI Plan period

i.e., 2009-10, 2010-11 and 2011-12 at

Rs. 20.675 lakhs, Rs. 86.517 lakhs and

Rs. 63.717 lakhs, respectively.

ii).

INTEGRATED TRIBAL DEVELOPMENT

PROGRAMME FOR BANKA DISTRICT

OF BIHAR

PROJECTS WITH ASSISTANCE UNDER

NABARD’s TRIBAL DEVELOPMENT

FUND (TDF)

i).

INTEGRATED TRIBAL DEVELOPMENT

PROGRAMME FOR CHAKAI BLOCK OF

JAMUI DISTRICT OF BIHAR

The project is being implemented in

tribal dominated Dulampur, Nauwadih,

Table 7.8

The project is being implemented in tribal

dominated Katoria, Chandan and Bounsi

blocks of Banka district through WADI

approach (Agri-Horti-Forestry). Total outlay

of the project is Rs. 675.91 lakhs, of which

NABARD, Patna is funding Rs. 512.33

lakhs (75.8%), fund dovetailed from

SGSY share of Rs. 31.14 lakhs (4.61%),

Beneficiary share is Rs.117.44 lakhs

(Rs. In Lakh)

Particulars Bihar Jharkhand (Phase-I) revised

Total Outlay MORD 622.873 652.150

CSB 208.614 302.681

Beneficiary 289.044 247.274

Credit 320.052 235.865

Total 1440.583 1437.97

The project are;

1.Development of Tasar and Ericulture in Bihar

2. Development of Tasar and Eri culture in Jharkhand-Phase I:

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annual report 2011-12

(17.37%) and Loan from NABARD

amounts to Rs. 15 lakhs (2.22%), for a

period of seven years starting 2008-09,

respectively.

CLUSTER DEVELOPMENT PROJECTS

In pursuance of the suggestion from the

Planning Commission and Ministry of

Textiles, Govt. of India, CSB is promoting

development of sericulture in the cluster

mode approach throughout the country

during XI Plan.

Under the Cluster Promotion Programme,

the CSB in close co-ordination with DOSs

continued to assist 45 model sericulture

clusters in pre-cocoon sector covering 16

States during 2011-12 involving central

share of Rs.11.37 crores (up to November,

2011).

Further, CSB in association with States

operates 5 post-cocoon clusters one

each in Tamil Nadu, Andhra Pradesh,

West Bengal, Maharashtra and Assam

for development of post-cocoon sector

during 2011-12. The central share of

Rs.1.29 crores has been sanctioned up to

November, 2011.

The cluster programme will be concluded

by March, 2012 and the model clusters

(pre-cocoon) are proposed to be

maintained under the State control during

XII Plan.

VI. SILK EXPORTS

Silk -Goods export earnings during the

year 2009-10, 2010-11 and 2011-12 are

given at table 7.9.

Export Earnings of Silk Items

The Export of US$ 597.82 million

(Rs.2723.86 Crore) has been achieved

during April-March period of the year

2010-11, compared to US $ 603 in the

F.Y. 2009-10.

Natural Silk Yarn, Fabrics, Made-ups etc.

constitute the bulk of silk export from India

with a share of around 58 % of India’s

total silk goods exports. Ready made

Garments account approximately for

40.20% to the total silk goods exports. Silk

Carpet account approximately for 0.58%

to the total silk goods export and balance

silk Waste which is the raw material for

the spun silk industry is also exported in

small quantity.

Table 7.9

(Value: ` in Crore)

S.N. Items of Silk-Goods Export Achievement during XI Plan

2009-10 2010-11 2011-12 (P)

(April to Sept)

1 Natural Silk Yarn Fabrics,

Made-ups

1971.98 2123.21 450.69

2 Readymade Garments 854.95 683.31 644.20

3 Silk Carpets 40.59 21.10 5.96

4 Silk Waste 24.92 36.14 12.67

TOTAL 2892.44 2863.76 1113.52

P: Provisional, Source: DGCIS, Kolkata

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ministry of textiles

Exports during year 2011-12 (till October)

are given at table 7.10.

Hong Kong, USA, UAE, UK and Germany

are the top five countries importing

Indian Silk goods (in value items) during

April-March period of the year 2010-

11 and accounted for 22.7% 13.59%,

10.21%, 9.28%, 5.09% respectively of

the total export earnings. They altogether,

accounted for Rs.1659.04 which has

60.90% of the total export earnings of

Rs.2723.86 crore during the period.

Imports

The import of Raw silk during April-March

period of the year 2010-11 was 5870 MT

(metric tons) as compared to imports of

7388 MT during the corresponding period

of 2009-10 indicating a decrease of

20.0%(i.e.1468MT)

VII. RASHTRIYA KRISHI VIKAS YOJANA

(RKVY):

Sericulture is now included under the

Rashtriya Krishi Vikas Yojana (RKVY) of

the Ministry of Agriculture, Govt. of India.

The scheme covers on-farm sericulture

activities, strengthening the monitoring

and Extension mechanism, post cocoon

activities like reeling, yarn production as

an Enterprise activity. Sericulture sector

projects costing Rs. 42.14 Crore have

been posed for funding during 2011-12.

VIII. SCHEDULED CASTES SUB-PLAN

(SCSP) AND SCHEDULED TRIBAL

SUB-PLAN (TSP)

Planning Commission, Govt. of India has

formulated revised guidelines for Schedule

Caste Sub Plan (SCSP) and Tribal Sub Plan

(TSP) to ensure channelising proportionate

flow of Plan Outlay from general sectors

(Other than the allocation for NE States)

for implementation of schemes which

directly benefit the individuals or families

belonging to Scheduled Castes and

Scheduled Tribes commencing from 2011-

12. The objectives of the programme

include substantial reduction of poverty

& unemployment, creating productive

assets, human resource development and

arrest exploitation through physical and

financial security among the Scheduled

Castes and Scheduled Tribes. Keeping

in view these objectives and the revised

guidelines communicated by the Ministry

of Textiles, a non-divertible provision of

Rs.25.80 crores (excluding NE States)

Table 7.10

Silk Exports

(Rs. in Crore)

Sr.

No.

Item of Export 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Upto

October

2011

1. Natural Silk yarn, 2365.34 1525.68 1711.02 1413.98 1578.40 536.10

Fabrics, madeups

2. Silk Readymade 817.87 1043.47 1458.48 1393.51 1095.10 741.12

Garments

3. Silk Carpets 132.36 56.26 54.68 39.38 15.84 8.04

4. Silk Waste 22.78 11.94 5.73 24.92 34.52 14.72

Total 3338.35 2637.35 3229.91 2871.79 2723.86 1299.98

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annual report 2011-12

for sericulture sector has been earmarked

from out of Rs.172.55 crores approved by

Ministry for CDP, to implement Scheduled

Castes Sub-Plan (Rs.21.00 crores) and

Tribal Sub-Plan (Rs.4.80 crores) during

2011-12. Accordingly, the State-wise

break-up of funds earmarked exclusively

for SCSP and TSP from CDP was worked

out and communicated to the Departments

of Sericulture in State for implementation

of relevant CDP components on lines with

the revised guidelines for the development

of SCs and STs. Funds are being utilised

as per approved guidelines.

IX. OTHER ISSUES

1. SCHEMES / POLICIES RUN BY CSB

FOR THE BENEFIT OF PERSONS

WITH DISABILITIES

While the central sector programmes like

R&D, Seed support, Quality Certification

Systems etc. of CSB are mainly to

supplement the efforts of State Govts.,

the Centrally Sponsored programme

viz. Catalytic Development Programme

( CDP) is aimed to ensure coordinated

effort to support sericulture development

at all stages from food plant cultivation to

production and processing of silk. Though

the CDP is being implemented jointly by

CSB and concerned State Govt., the task

of identification of beneficiaries under the

programme lies with the State Govt. While

there is no separate or specific scheme/

programme under CDP for the benefit of

persons with Disabilities, the benefit of

the schemes / components under CDP

can also be availed by the persons with

Disabilities.

With regard to the sanctioned strength and

the number of persons with disabilities in

various posts in different Groups under

CSB, the details are given in the table 7.11.

Table 7.11

Sl. No. Group Persons with

Disability

Sanctioned

Strength

1 Group A 10 949

2 Group B 24 1618

3 Group C 30 1706

Total 64 4273

*****

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CHAPTER VIII

WOOL & WOLLEN TEXTILES

INDUSTRY

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CHAPTER VIII

WOOL & WOLLEN TEXTILES INDUSTRY

The Central Wool Development

Board (CWDB) Jodhpur, Rajasthan

was set up under the Rajasthan

Societies Registration Act, 1958 in July

1987, to administer the implementation

of programmes and schemes in Central

Sector for the promotion and development

of wool and woollen industry in the

country.

The Government of India vide Gazette

Notification No. 2/7/2008-W&WT dated

November 22, 2010, has reconstituted

the Board for a period of two years. The

Joint Secretary (Wool), Ministry of Textiles

and Vice-Chairman of the Board shall

discharge the duties of the Chairman till

the post of Chairman is filled up.

The Ministry of Textiles has allocated

Rs. 13.04 Crore to the Central Wool

Development Board (CWDB) for the

Annual Plan 2011-12 to implement its

various Plan Schemes and Programmes

for the growth and development of wool

sector. Against this target, the Ministry of

Textiles has already released Rs. 6.25

Crore and the Board utilized Rs. 5.20

Crore till December, 2011, accordingly.

On the Non-Plan side, the Board utilized

Rs. 1.13 Crore to meet establishment

expenses upto December,2011.

The Board has undertaken following

activities during 2011-12 (upto

December,2011):

1. Integrated Wool Improvement

and Development Programme

(IWIDP)

The Integrated Wool Improvement &

Development Programme (IWIDP),

the flagship scheme of Wool Sector,

is being implemented during the XIth

Five Year Plan period at an estimated

cost of Rs. 48.00 Crore. The Scheme

provides support to the Industry & Wool

growers to qualitatively upgrade product

and technology to enable them to get

better returns for their products and to

get a larger share of the domestic and

global market. The Programme has two

main components: (A) Improvement of

Wool Fibre and (B) Human Resource

Development and Promotional Activities.

This Programme aims to cover 26 lakh

sheep for health coverage, to set up 10

Ram Raising Units, to provide financial

assistance for 200 Sheep Pens, to provide

feed supplement to total 80,000 sheep, to

establish 7 Multiple Facility Centres, to

provide revolving fund for Marketing of 10

lakh Kg. wool, to supply 26,000 stud rams

for breed improvement, to benefit 400

Angora rabbit families and 2400 Pashmina

goat rearing families and to train 1000

persons along with other promotional

and marketing activities under Human

Resource Development Programme.

Under IWIDP, the Board is implementing

different schemes for improving quantity

and quality of wool produced from

sheep, Angora rabbit, Pashmina goat

and is providing training to wool growers,

weavers, resource persons along with

associated promotional and marketing

activities. Following schemes are being

implemented under this programme:

(A) Improvement of Wool Fibre

(i) Sheep & Wool Improvement

Scheme: (SWIS)

The Board had taken up ‘Sheep and Wool

Improvement Scheme’ (SWIS) to improve

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the quality and quantity of indigenous wool

in the country. The Board is implementing

various projects under this scheme in

all major wool producing States having

components for (i) ‘Health Care’ for

treatment, vaccination and medicines to

sheep (ii) ‘Breed Improvement’ for genetic

improvement of sheep and to distribute

stud Rams (iii) support for ‘Multipurpose

Extension Centers’ to provide different

facilities at one place, (iv) ‘Marketing &

Grading Assistance’ to wool growers to

get better returns from wool (v) conducting

‘Training Programmes’ for wool growers

in latest techniques of sheep rearing

activities, (vi) ‘Ram Raising Unit’ to develop

good quality breedable Rams and to fulfill

requirement of stud Rams, (vii) ‘Assistance

for Sheep Pen’, (viii) provide ‘Feed

Supplement’ to sheep (weak, pregnant/

breedable ewes) and (ix) ‘Creation of

Revolving Fund’ for marketing of raw wool

and to revitalize the states wool marketing

federations/corporations and optimum

utilization of infrastructure available with

them for this purpose.

During current financial year 2011-12, the

Board had fixed target to benefit 16 lakh

sheep under different ongoing projects in all

major wool producing States with financial

provision of Rs. 8.26 crore. Against this

target, the Board has benefited 12 lakh

sheep under different ongoing projects and

sanctioned Feed Supplement for 50,000

sheep/Pashmina goat from Ladakh & Kargil

region and utilized Rs. 2.50 crore upto

December, 2011. The Board is presently

implementing various projects under this

scheme in all major wool producing States

like: Rajasthan, Gujarat, Madhya Pradesh,

Uttrakhand, Maharashtra, Haryana,

Jammu & Kashmir, Himachal Pradesh,

Andhra Pradesh and Karnataka.

(ii) Angora Wool Development Scheme

The Board is implementing Angora Wool

Development scheme in hilly areas

of country to support Angora rearing

activity among farmers, strengthening

Germplasm Centre (GPC), facilitating

distribution of Angora rabbit among

rearers as foundation stock along with

necessary training, feed, medical kit and

nutrition support free of cost. The scheme

has following components:

i) Establishment of Mini Angora rabbit

farm

ii)

iii)

Mini Feed Manufacturing Units

Common Facility Centre (CFC) for

Angora Wool Processing and Training

iv) Research & Development,

v) Strengthening of Angora rabbit

Germplasm Centre.

For the Annual Plan 2011-12, the Board

has fixed target to benefit 80 new and 100

ongoing Angora rabbit rearing families

under different components of scheme

with total financial allocation of Rs. 0.62

crore. Against this target, the Board has

sanctioned 4 new projects to cover 80 new

Angora families from Uttarakhand, Rajasthan

and Himachal Pradesh and utilized Rs. 0.44

crore upto December, 2011.

(iii) Pashmina Development Scheme:

During the Xth Five Year Plan period,

the Scheme for the development of

Pashmina Wool was launched in Ladakh

region of J&K State as part of Prime

Minister’s Special Package. The Scheme

is continuing in the XIth Five Year Plan

period with following components:

- Buck Exchange Programme.

- Distribution of high quality

Pashmina bucks in nontraditional

areas to enhance

Pashmina production.

- Training of formation of Breeders

Association (Guilds) or village

Pashmina Cooperative Societies.

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- Establishment of Fodder Bank.

- Refresher Training to Nomadic

Breeders as Paramedics.

- Health Coverage.

- Refresher Courses to In-service

Candidates for 3 days/breeders

camps.

- Fodder Development.

- Provision of improved Pashmina

Combs for Efficient Harvesting

of Pashmina.

For the Annual Plan 2011-12, the Board

has fixed target to benefit 800 ongoing

Pashmina families with financial outlay

of Rs. 0.28 Crore. Accordingly, the

Board benefited 800 ongoing Pashmina

families and released Rs. 0.28 Crore to

Ladakh Autonomous Hill Development

Council, Leh.

B. Human Resource Development

& Promotional activities

The Board had identified areas for

undertaking various training programmes

in collaboration with various reputed

Organizations/ Institutions/ Departments

on: Farm management for sheep; Angora

& Pashmina rearing, sheep shearing by

machines, testing & report writing and

quality control/assurance, wool grading

& marketing, processing of wool and

woolens products, latest weaving and

designing techniques to weavers. The

following activities are part of HRD &

Promotional Activities:

- Marketing and Promotional

activities (organizing fairs and

Woollen Expos, seminar and

workshops, etc.)

- Market Intelligence and Publicity

- Publication of quarterly news

magazine ‘Wool Ways’

- Research, Study and

Consultancy

- Training under Weaving and

Designing Training Centre, Kullu

- Monitoring and Evaluation of

Scheme

- Human Resource Development

and Training to farmers/

breeders/ weavers.

- Strengthen and upgrade wool

testing, wool grading and

marketing facilities

For the Annual Plan 2011-12, the Board has

fixed target to impart training to 200 resource

persons, organize 15 Woollen Expos along

with other promotional activities under this

scheme with total financial allocation of

Rs. 2.00 Crore. Upto December, 2011, the

Board has utilized Rs. 1.44 Crore under

this programme and imparted training

to 174 resource persons, organized 13

Woollen Expos and published quarterly

news magazine and raw wool price bulletin,

regularly. Running a Weaving & Designing

Training Centre at Kullu for providing

training in handloom weaving and trained

45 persons by conducting 4 months course

on regular basis of 15 trainees per batch

and also running another Wool Testing

Centre at Bikaner to provide testing facilities

for raw wool, woollen yarn and end product

at the subsidized testing charges as wool

fiber has lot of variation by nature causing

variation in the end product.

2. Quality Processing of Wool

and Woollen Scheme

The unorganized Woollen Sector suffers

from inadequate processing facilities.

The pre loom & post loom facilities

are outdated. The sector uses crude

form of carding, which results in low

productivity, besides affecting the health

of workers. The spinning technology is

primitive, which is urgently required to be

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upgraded through improved equipments/

machineries. The Scheme provides a

comprehensive service package from

deburring to carding & spinning stage.

The setting up of modern plants will

increase wool-processing capacity, will

provide value addition to Indian wool,

will create more employment and will

augment income to personnel engaged in

these decentralized activities.

The Board is implementing a scheme

namely “Quality Processing of Wool” (preloom

and post-loom processing activities)

for improving quality of raw wool, finishing of

woolen products and value addition to wool

and woolens products. This scheme attracts

the spinners to modernize their obsolete

and small yarn-manufacturing units.

The project beneficiaries are State Wool

Board/ Corporation/ Non-Governmental

Organization/ Registered Societies/Private

Entrepreneurs etc. engaged in processing

of wool and woolens. Under this scheme,

the agency has to bear the cost of land &

building by their own resources and should

have clear ownership rights. The CWDB

provides grant under Non-Recurring

Expenses for purchase of machineries &

plants only for setting up the Common Facility

Centre (CFC). Recurring Expenditure shall

be borne by the agency/association out of

its own resources.

For the Annual Plan 2011-12, the Board

has fixed target to establish four new

Common Facility Centres under pre-loom

processing facilities like wool scouring,

carbonizing, dyeing and carding of wool

etc. with total financial outlay of Rs. 2.00

Crore. Upto December, 2011, the Board

has utilized Rs. 0.50 Crore under this

scheme and established two CFCs in

Himachal Pradesh.

3. Social Security Scheme

for Sheep Breeders

The Board is implementing this scheme to

benefit the sheep breeders by providing life

insurance to them and their sheep flock by

two plans (i) Sheep Breeders Insurance

Scheme and (ii) Sheep Insurance Scheme.

The basic objective of these insurance

plans is to provide enhanced insurance

coverage to sheep breeders in the case

of natural death/accidental death, total/

partial disability and for their sheep

flock in case of accident including

fire, lightning, storm, tempest, flood,

inundation, earthquake, famine and

diseases contracted or occurred during

the period of the policy.

(i)

Total premium payable under ‘Sheep

Breeders Insurance Scheme’ is

Rs. 330/- and contribution of sheep

breeder, Central Wool Development

Board & Social Security Fund ( of

Govt. of India ) is Rs. 80/-, 150/- and

Rs. 100/- per year, respectively. In the

event of natural death of the sheep

breeder, sum assured is Rs. 60,000,

in case of partial disability sum

assured is Rs. 75000/- and in case of

accidental death/total disability sum

assured is Rs. 1,50,000. Additional

benefit of scholarship for two child @

Rs. 300 per quarter per child is also

to be paid to the student studying

from 9th standard to 12th standard.

(ii) Total premium payable under ‘Sheep

Insurance Scheme’ is Rs. 44/- per

sheep. Out of it, Rs. 19/- per sheep

is contributed by the sheep breeders

and CWDB’s contribution is Rs. 25/-

per sheep. In the event of death of

sheep, sum assured is Rs. 1,200/-

per sheep. The benefit of subsidy is

provided to beneficiary for maximum

period of three year.

During Annual Plan 2011-12, the Board

has made target to cover 15,000 sheep

breeders and 2,00,000 sheep under the

schemes of Sheep Breeders and Sheep

Insurance Scheme, respectively. Upto

November, 2011, the Board has insured

10,327 sheep breeders under Sheep

Breeders Insurance Scheme.

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CHAPTER IX

DECENTRALISED

POWERLOOM SECTOR

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CHAPTER IX

DECENTRALISED POWERLOOM SECTOR

The decentralised powerloom

sector is one of the most important

segments of the Textile Industry

in terms of fabric production and

employment generation. It provides

employment to 57.44 Lakh persons

and contributes 62 percent to total cloth

production in the Country. 60% of the

fabrics produced in the powerloom

sector is of man-made. More than 60%

of fabric meant for export is also sourced

from powerloom sector. The readymade

garments and home textile sectors are

heavily dependent on the powerloom

sector to meet their fabric requirement.

There are approximately 5.19 Lakh

Powerloom Units with 22.98 Lakh

Powerlooms as on 31.08.2011. The

technology level of this sector varies from

obsolete plain loom to high tech shuttleless

looms. There are approximately

1,05,000 shuttleless looms in this sector.

It is estimated that more than 75% of the

shuttle looms are obsolete and outdated

with a vintage of more than 15 years

and have virtually no process or quality

control devices / attachments. However,

there has been significant upgradation

in the technology level of the powerloom

sector during the last 5-6 years.

Growth in the Powerloom Sector

The estimated number of powerlooms in

the decentralised sector in the country till

31.08.2011 was 22,98,050. The year-wise

growth in the number of looms installed is

given in table 9.1.

Cloth production( in million sq.mtr):

The details of total cloth production and

production by powerloom sector during

the last five years are given in table 9.2.

Modernisation & Strengthening of

Powerloom Service Centre

Out of 44 Powerloom Service Centres

under Textile Commissioner and other

agencies, 43 Powerloom Service Centre

(PSCs) have been modernised with

modern machines and equipment such

as shuttleless looms of type Projectile,

Rapier, Air jet, Automatic Cop Changing

Looms, Drop Box Looms, Pirn Winders,

Cone Winders, Sectional Warping

Machine, DG Sets etc. Out of 44 PSCs,

14 PSCs are under the Office of the

Textile Commissioner, 25 PSCs are run

by different TRAs, 4 PSCs under KSPDC,

Bangalore & one PSC is run by State

Govt. of Madhya Pradesh.

Year

Table 9.1

No. of

powerlooms

Growth

percentage

2006-07 19,90,308 -

2007-08 21,06,370 5.8%

2008-09 22,05,352 4.7%

2009-10 22,46,474 1.9%

2010-11 22,82,744 1.61%

2011-12 (up to Aug, 2011) 22,98,050 0.67%

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Year

Total

production

Production

on

Powerloom

Table 9.2

%age of

powerloom over

total cloth

production

%age increase over

previous year

Total

Production

Powerloom

production

2006-07 53,389 32,879 61.78% - -

2007-08 56,025 34,725 61.98% 4.94% 5.61%

2008-09 54,966 33,648 61.22% -1.89% -3.10%

2009-10 (P) 60,333 36,997 61.29% 9.76% 9.95%

2010-11 (P) 61,808 37,571 60.73% 2.55% 1.55%

2011-12 (P)

April - Aug

24,355 15,055 61.81% -- --

Performance of Powerloom Service

Centres

During the year 2010-11, the 44 PSCs

trained 11530 persons, developed 5569

designs & tested 79740 samples and

generated total revenue of Rs.81.40 lakh.

During this period, PSCs have organised

462 exhibitions, seminars & workshops.

The achievement during 2011-12(April to

October) is as under :-

1. No. of trainees - 5233

2. No. of sample tested - 37030

3. No. of Design developed - 3233

4. No. of consultancy / trouble - 2501

shooting

5. Total Revenue - 67.17 lakh

6. No. of seminar, exhibitions

and workshops

- 185

Computer Aided Design centers

The following 17 Computer Aided Design

Centres (CADC) have been established:

Coimbatore, Karur, Komarapalayam

and Somanur (Tamil Nadu), Surat and

Ahmedabad (Gujrat), Solapur, Ichalkaranji,

Bhiwandi and Mumbai (Maharashtra),

Bilwara (Rajasthan) and Ghaziabad (Uttar

Pradesh), Bangalore and Doddaballapur

(Karnataka), Burhanpur and Indore (Madhya

Pradesh) and Panipat (Haryana). These

CADCs help the decentralized and small

Powerloom units to access new designs

and improve the quality of the fabric.

Group Insurance Scheme to the

powerloom workers

Government of India have launched a

revised Scheme “welfare of powerloom

workers through Group Insurance

Scheme’ in association with LIC from 1 st

July 2003.

In accordance with the XIth Five Year

Plan, the Scheme has been modified by

merging the existing JBY Scheme and

Add-on GIS w.e.f. 1 st January 2008. As per

the modified Scheme, the total premium

is Rs.330/- out of which, Rs.150/- is

to be borne by the Office of the Textile

Commissioner, Government of India and

Rs.100/- is being paid by the LIC from

the social security fund of Government of

India. Only a premium of Rs.80/- is to be

paid by the powerloom weaver for getting

the benefits under the said scheme. The

coverage benefit under the scheme is

given in table 9.3.

In addition to the above, a worker under

JBY will also be entitled the educational

grant of Rs.600/- per child/ per half year for

two children studying in IX to XII standard

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Component

Natural death

Table 9.3

Accidental

Death

Total Permanent

Disability

Partial Permanent

Disability

GIS Rs. 60,000/- Rs. 1,50,000/- Rs. 1,50,000/- Rs. 75,000/-

for a maximum period of 4 years under

Shiksha Sahayog Yojana (SSY).

Under the said schemes, 9,68,979

powerloom workers have been insured

upto October, 2011 involving GOI share

of premium to the extent of Rs.1062.45

lakh since July, 2003 to October, 2011.

During the year 2010–11, 1,53,896 workers

have been insured and Govt. share of

premium to the extent of Rs.2,30,84,400/-

have been paid. During the year 2011–12

(April to October) 76,343 workers have

been insured.

Group Workshed Scheme

The Govt. of India has introduced a Group

Workshed Scheme for decentralized

powerloom sector on 29.7.2003, during the

Xth Five-Year Plan. The scheme aims at

setting up of Powerloom Parks with modern

weaving machinery to enhance their

competitiveness in the Global Market and

the same has been modified. As per the

modified Scheme, subsidy for construction

of workshed would be limited to 40% of

the unit cost of construction subject to a

maximum of Rs. 160/- per sq. ft., whichever

is less. Ordinarily, minimum 4 weavers

should form a group with 48 modern looms

of single width or 24 wider width looms and

per person minimum 4 looms will be allowed

to be installed. The maximum subsidy will

be Rs.12 lakh per person. The scheme

does not envisage more than 500 looms

under one project proposal.

Total 42 projects have been approved

during 11 th Plan period upto October

2011, for providing Government subsidy

of Rs.16.51 Crore on eligible construction

area of 13.67 lakh sq. ft. Total subsidy of

Rs.7.60 Crore has been released. Out

of the said 42 projects, 18 projects have

been completed.

Integrated scheme for Powerloom Sector

Development

In order to achieve the overall development

of the powerloom sector, Govt. has

announced the Integrated Scheme for

Powerloom Sector Development during

2007 – 08. The Scheme has got the

following components :-

• Marketing Development programme

for Powerloom Sector

• Exposure visit of Powerloom Weavers

to other Clusters

• Survey of the Powerloom Sector

• Powerloom Cluster Development

• Development and Upgradation of

skills (HRD)

(a) Marketing Development programme

for Powerloom Sector

Marketing Development programme

has a vital role in powerloom sector.

Therefore, an activity for promotion

and marketing of powerloom products

through different mechanism such as

organization of exhibitions and buyer

seller meets, Seminar / Workshops,

publicity & awareness programmes etc.

are being implemented in association

with Powerloom Development & Export

Promotion Council (PDEXCIL) and other

agencies. During 11 th Plan(2007-08 to

Oct.2011), total 44 BSM have been

conducted and Govt. has released fund

amounting Rs.2.66 Crore.

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(b) Exposure visit by powerloom

weavers to other clusters :

The powerloom weavers from the clusters

of low level technology are not exposed to

other areas of manufacturing to be able

to produce diversified textile products

or value added fabrics due to limited

knowledge.

With a view to overcome such deficiency,

the powerloom weavers in different

clusters, are being taken to other developed

clusters to become familiar with the working

upgraded skills, the products manufactured

and the marketing techniques adopted in

those clusters. The concerned Regional

Offices assist the powerloom weavers

during the exposure visits and facilitate

effective and meaningful interaction. The

financial assistance is also being provided

by the Government of India to meet the

expenditure arising out of these visits.

During 11 th Plan(2007-08 to Oct.2011),

total 2367 workers visited the developed

powerloom clusters and Govt. has paid

the fund of Rs.0.58 Crore for travelling and

incidental expenditure to workers.

(c) Powerloom Cluster Development

Towards the development of different

powerloom clusters identified, 30 CDOs

were given training in cluster development

by the EDI, Ahmedabad during 2007

– 08 involving the total expenditure of

Rs.15.97 lakh. During the year 2008-09,

Rs.4.80 lakh has been spent for refresher

training of Officers from Regional Offices

& Headquarters. The following 8 clusters

have been selected for development and

CDO have been posted in the respective

cluster and diagnostic study have been

completed by the CDO:

(1) Burhanpur, (2) Nalagonda, (3)

Ranaghat (4) Umbergaon (5) Amritsar (6)

Karur (7) Bhilwara (8) Maunathbhanjan

Coverage of Powerloom Sector in other

ongoing Schemes :

20% Margin Money Subsidy Scheme

under TUFS

The Govt. has implemented 20% Credit

Linked Capital Subsidy Scheme under

the TUFS, especially in order to help the

decentralized Powerloom Sector. The

scheme was announced on 6.11.2003 by

Ministry of Textiles and is applicable to

Powerlooms in SSI sector only. Under

the Scheme, Rs.223.27 crore has been

disbursed to 3033 cases between

November, 2003 to 30.11.2011. The

Scheme has been re-named as 20% MMS

since 1.4.2007. Progress of this Scheme is

given at table 9.4.

Table 9.4

Sr. No. Year No. of units Amount of subsidy released

( Rs. In Crore)

1. 2003 – 04 4 0.10

2. 2004 – 05 150 6.00

3. 2005 – 06 368 23.00

4. 2006 – 07 827 59.86

5. 2007 – 08 567 44.95

6. 2008 – 09 404 32.48

7. 2009 - 10 363 30.57

8. 2010 – 11 233 17.72

9. 2011- 12 (upto Nov.2011) 117 8.59

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All India Powerloom Board

The All India Powerloom Board was

first constituted as an Advisory Board in

November, 1981 and since then GOI has

reconstituted AIPB from time to time. The

Govt. of India has last reconstituted the

AIPB for a period of two years vide Office

Memorandum No.8/8/2007-PL dated

22.12.2011. It has representatives of the

Central and State Govts., Federations/

Associations of Powerloom Industry

as its members and is headed by the

Hon’ble Union Minister of Textiles as the

Chairman.

MEGA CLUSTER

The Schemes for mega cluster envisage

support for weavers/artisans, both in and

outside the cooperative fold, including

those in Self Help Groups (SHGs), Non

Governmental Organisations (NGOs) etc.

The Schemes provide for development

of all the facets of selected clusters like

raw material support, design inputs, upgradation

of technology, infrastructure

development, marketing support, welfare

of weavers etc. A convergence of the

existing development interventions of

the Ministry of Textiles & other Ministries/

Departments will be affected in these

clusters. The Schemes also raise living

standards of the weavers/artisans by

improving the infrastructure facilities,

with better storage facilities, technology

up-gradation in pre-loom/on-loom/postloom

operations, weaving sheds, skill upgradation,

design inputs, health facilities

etc.

The development of 6 Mega Clusters in

Handloom, Handicrafts and Powerlooms

were first announced by the Finance

Minister in his Budget Speech 2008-09.

Consequently, following three Central

Sector Plan Schemes were approved

by the Cabinet Committee on Economic

Affairs (CCEA) in the meeting held on

20.11.2008:

i) Comprehensive Powerloom Cluster

Development Scheme

ii)

Comprehensive Handloom Cluster

Development Scheme

iii) Comprehensive Handicrafts Cluster

Development Scheme

Based on Budget Announcement made

in 2008-09, 2009-10 and 2010-11, 12

centres are being developed as mega

clusters on a Public Private Partnership

(PPP) model to scale up infrastructure and

production in Handloom, Handicraft and

Powerloom sectors, wherein Government

contribution has been earmarked at

maximum of Rs.70 crore for each mega

cluster. At present, following 12 centres

are being developed as Mega Clusters as

in table 9.5.

Handlooms:

4 Mega Clusters

1. Varanasi (U.P).

2. Sivsagar (Assam).

3. Murshidabad (W.B.).

4. Virudhunagar (T.N)).

Table 9.5

Handicrafts:

5 Mega Clusters

5. Moradabad (U.P.)

6. Narasapur (A.P.).

7. Bhdohi-Mirzapur (U.P.).

8. Srinagar (J&K).

9. Jodhpur (Rajasthan)

*****

111

Powerloom:

3 Mega Clusters

10. Bhiwandi (Maharastra).

11. Erode (Tamil Nadu).

12. Bhilwara (Rajasthan).


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CHAPTER X

HANDLOOMS

113


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CHAPTER X

HANDLOOM INDUSTRY

The Union Minister for Commerce & Industry and Textiles, Shri Anand Sharma lighting the lamp to

inaugurate the Exhibition of Handicraft and Handloom Products from West Bengal, in New Delhi on

September 05, 2011. The Minister of State for Textiles, Smt. Panabaaka Lakshmi and the Secretary,

Ministry of Textiles, Ms. Rita Menon are also seen.

Handloom weaving is one of the

largest economic activity after

agriculture providing direct and

indirect employment to more than 43

lakh weavers and allied workers. This

sector contributes nearby 15% of the

cloth production in the country and also

contributes to the export earning of the

country. 95% of the world’s hand woven

fabric comes from India.

The handloom sector has a unique place

in our economy. It has been sustained by

transferring skills from one generation to

another. The strength of the sector lies

in its uniqueness, flexibility of production,

openness to innovations, adaptability to

the supplier’s requirement and the wealth

of its tradition.

The adoption of modern techniques and

economic liberalization, however, have

made serious inroads into the handloom

sector. Competition from powerloom and

mill sector, availability of cheaper imported

fabrics, changing consumer preferences

and alternative employment opportunities

have threatened the vibrancy of handloom

sector.

The Government of India, since

independence, has been following a

policy of promoting and encouraging

the handloom sector through a number

of programmes and schemes. Due to

various policy initiatives and scheme

interventions like cluster approach,

aggressive marketing initiative and social

welfare measures, the handloom sector

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ministry of textiles

has shown positive growth and the

income level of weavers has improved.

The handloom fabric production has been

very impressive and growth has been at

the rate of 6% to 7% in the beginning of

the 11 th Plan. The subsequent economic

downturn has affected all the sectors in

India and abroad and handloom was no

exception. The production had declined

nominally in 2008-09. Now, there is a

positive sign and production has shown

positive growth. The export of handloom

products has also shown a growth of

more than 32% in 2010-11 as compare to

2009-10.

In the cluster approach, efforts were

made to cover groups of 100 weavers

to 25000 weavers through different

cluster sizes for their integrated and

holistic development. Aggressive

marketing initiative through marketing

events (600-700 events per year) has

helped weavers and their cooperative

societies to understand the market trend

and consumer choice, besides selling

the products directly to the customers.

For a focused attention on the sector,

the Ministry has started celebrating

‘Handloom Week’ every year.

The handloom forms a precious part of

the generational legacy and exemplifies

the richness and diversity of our

country and the artistry of the weavers.

Tradition of weaving by hand is a part

of the country’s cultural ethos. As an

economic activity, handloom is the 2 nd

largest employment provider next only

to agriculture. The sector about 23.77

lakh handlooms provides employment

to 43.31 lakh persons. Of which, 10%

are scheduled castes, 18% belong to

scheduled tribes, 45% OBC and 27%

are from other Castes. Production in

the handloom sector recorded a figure

of 6949(P) million sqr.meters in the year

2010-11, which is about 23.23% over

the production figure of 5493 million

sqr. meters recorded in the year 2003-

04. During 2011-12 production in the

handloom sector is reported to be 5178

million sqr. meters (April – Dec.,2011)

and is given at table10.1

Year

Table 10.1

Cloth Production by Handloom Sector

Cloth Production

by Handloom

Share of Handloom

in the total cloth

production

Ratio of Handloom

to Powerloom

(in terms of cloth)

Total Cloth

Production*

2003-04 5493 16.2 1:4.91 33874

2004-05 5722 16.1 1:4.95 35573

2005-06 6108 15.9 1:5.01 38390

2006-07 6536 15.9 1:5.03 41161

2007-08 6943 16.0 1:4.97 43265

2008-09 6677 15.9 1:5.04 42121

2009-10 6806 14.9 1:5.41 45819

2010-11 6949 14.6 1:5.59 47083

2011-12 (upto 5178 (P) 23110

Dec.2011)

* The total cloth production includes Handloom, Powerloom and Mill Sector excluding hosiery, khadi, wool and silk.

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annual report 2011-12

The Office of the Development

Commissioner for Handlooms has been

implementing five schemes during 11th

Five Year Plan, which are – (i) Integrated

Handloom 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 scheme-wise

progress is detailed below:

INTEGRATED HANDLOOMS

DEVELOPMENT SCHEME

The Integrated Handloom Development

Scheme (IHDS) envisages taking care of

all the needs of the weavers in a cluster

in an integrated and coordinated manner.

The scheme aims to focus on formation

of weavers group as a visible entity,

develop the handlooms weavers groups

to become self-sustainable, inclusive

approach to cover weavers both within

and outside the cooperative fold, skill

up-gradation of handlooms weavers/

workers to produce diversified products

with improved quality to meet the

market requirements, provide suitable

workplace to weavers to enable them to

produce quality products with improved

productivity etc.

Under the scheme, clusters having about

300 - 500 looms under each, are taken

up for development in a time frame of 3

years at an upper cost of Rs.60.00 lakh

per cluster. Handloom weavers, who are

not covered by the clusters, are supported

through a ‘Group Approach”, which will be

implemented in a project mode. A Group,

consisting of 10 weavers or more, is

provided financial assistance for (i) Basic

inputs; (ii) Training in weaving, dyeing,

designing and managerial disciplines;

and (iii) Construction of Work-sheds.

During the year 2011-12, there is a

budgetary provision of Rs.164.70 crore

(Rs.129.70 crore for General States and

Rs.35.00 crore for NER States). Out of

Rs.164.70 crore, a sum of Rs.130.65

crore has been released to various State

Governments/UTs and other organizations

(upto 21.02.2012). The Targets for new

Clusters and Group Approach Projects for

the 2011-12 have not been fixed and priority

is for release of 2 nd & 3 rd instalments of the

clusters and 2 nd installment of the Groups

already sanctioned, 24 new Clusters have

been sanctioned. A sum of Rs.59.13 crore

has been released, which includes the third

installment of earlier sanctioned projects.

In addition, 258 Group Approach Projects

have also been sanctioned and a sum of

Rs.13.01 crore has been released, which

includes the earlier sanctioned projects.

Under Marketing Incentive Component of

IHDS, a sum of Rs.65.98 crore has been

released to various State Governments/

UTs. Phase-wise number of Clusters taken

up so far are given at table 10.2.

Table 10.2

Phase-wise number of Clusters

taken up by

2011-12 (upto 21.02.2012).

Phase

No. of

Clusters

sanctioned

No. of Group

Approach

Projects

sanctioned

Phase-I

20 --

(2006-07)

Phase-II & III 251 --

(2007-08)

Phase-IV

131 548

(2008-09)

Phase-V

52 411

(2009-10)

Phase-VI

107 829

(2010-11)

Phase-VII

24 258

(2011-

12) (upto

21.02.2012)

Total 585 2046

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State-wise number of Clusters and Group

Approach Projects taken up from 2006-07

Table 10.3

ministry of textiles

Number of Clusters Sanctioned during 2006-07 to 2011-12 under Integrated

Handlooms Development Scheme (IHDS)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Total

(upto

Sl. No.

21.02.12)

1 Andhra Prd. 2 26 11 2 13 1 55

2 Bihar 1 9 5 1 16

3 Chhattisgarh 5 3 2 10

4 Delhi 0 1 1

5 Gujarat 5 4 9

6 Haryana 0 1 1

7 Himachal Prd. 1 2 2 3 8

8 Jammu &

Kashmir

to 2011-12 (upto 21.02.2012) are given at

table 10.3 & 10.4, respectively.

0 8 2 10

9 Jharkhand 10 11 5 9 35

10 Karnataka 1 13 5 5 24

11 Kerala 1 19 5 25

12 Madhya Prd. 1 10 1 4 2 18

13 Maharashtra 0 6 1 7

14 Orissa 2 16 7 8 5 38

15 Punjab 0 0

16 Rajasthan 2 0 1 3 6

17 Tamilnadu 3 27 10 12 52

18 Uttar Pradesh 4 21 14 8 7 54

19 Uttarakhand 5 1 2 8

20 West Bengal 2 25 9 5 41

Total 18 195 94 31 77 3 418

NER

1 Arunachal Prd. 8 4 3 4 19

2 Assam 1 10 5 12 12 40

3 Manipur 1 19 14 6 40

4 Meghalaya 4 1 2 1 8

5 Mizoram 1 1 2

6 Nagaland 5 9 10 5 4 33

7 Sikkim 0 0

8 Tripura 10 4 5 6 25

Total 2 56 37 21 30 21 167

Grand Total 20 251 131 52 107 24 585

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annual report 2011-12

Table 10.4

Number of Group Approach sanctioned during 2006-07 to 2011-12 under

Integrated Handlooms Development Scheme (IHDS) (upto 21.02.2012)

S.N. General 2008-09 2009-10 2010-11 2011-12

(upto

21.02.12)

1 Andhra Prd. 127 135 90 352

2 Bihar 6 6

3 Chhattisgarh 6 24 30

4 Delhi 0

5 Gujarat 0

6 Haryana 12 9 1 22

7 Himachal Prd. 7 33 17 57

8 Jammu & Kashmir 11 6 17

9 Jharkhand 23 19 48 90

10 Karnataka 18 18

11 Kerala 21 21

12 Madhya Prd. 7 7

13 Maharashtra 54 54

14 Orissa 46 30 16 92

15 Punjab 0

16 Rajasthan 6 10 16

17 Tamilnadu 74 45 152 271

18 Uttar Pradesh 76 58 200 334

19 Uttarakhand 22 22 44

20 West Bengal 36 29 65

Total

Sub Total 475 343 677 1 1496

NER

1 Arunachal Prd. 20 11 14 17 62

2 Assam 14 14 33 34 95

3 Manipur 178 178

4 Meghalaya 3 14 14 3 34

5 Mizzoram 13 23 36

6 Nagaland 4 16 11 5 36

7 Sikkim 15 15 20 50

8 Tripura 17 42 59

Sub Total 73 68 152 257 550

Grand Total 548 411 829 258 2046

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ministry of textiles

2. HANDLOOM WEAVERS

COMPREHENSIVE WELFARE

SCHEME

Since 2005-06 and 2006-07 the

Government of India was implementing

two separate schemes namely the ‘Health

Insurance Scheme’ for providing health

care facilities to the handloom weavers

in the country and the ‘Mahatma Gandhi

Bunkar Bima Yojana’ for providing Life

Insurance Cover to handloom weavers in

case of natural / accidental death, total

/ partial disability due to accident. During

the 11th Plan, both schemes have been

amalgamated into one scheme namely

Handloom Weavers’ Comprehensive

Welfare Scheme. The details of the

schemes are as under:

2.1 Health Insurance Scheme (HIS)

The revised Health Insurance scheme for

Handloom Weavers is being implemented

during 2010-11 & 2011-12 to enroll 17.97

lakh weavers each policy year from 692

clusters all over India, Zone-I (in the

States of (Kerala, Karnataka, Puducherry,

Tamilnadu, Andhra Pradesh, Orissa,

Bihar, Chhatisgarh, Uttar Pradesh,

Gujarat, Madhya Pradesh, Maharashtra,

Rajasthan) and Zone-II (in the States of

Assam, Arunachal Pradesh, Manipur,

Meghalaya, Mizoram, Nagaland, Sikkim,

Tripura, Himachal Pradesh, Haryana,

J& K, Jharkhand, Uttarakhand, West

Bengal). The rates of premium are

given at table 10.5.

The annual limit per family is Rs.15,000/-

out of which OPD cover will be Rs.7500/-.

The scheme envisages covering (a) not

only the weaver but also his wife and

two children (b) all pre-existing diseases

as well as new diseases and (c) has

substantial provision for OPD. The

ancillary handloom worker like those

engaged in warping, winding, dyeing,

printing, finishing, sizing, Jhala making,

jacquard cutting etc. are also eligible to

be covered. The progress of the scheme

is given at Table 10.6.

The following new initiatives have been

taken in the Health Insurance Scheme for

more effective implementation –

1. The premium has been reduced by

14% as compared to previous year.

This has enabled more coverage of

weavers in the Policy year (2010-11)

& (2011-12), i.e., 17.97 lakh weavers

each as compared to 16.11 lakh

weavers enrolled during the year

2009-10.

Table 10.5

Zone-I ( 317 Clusters)

Govt. of India Share

Premium - Rs. 681.60

Service Tax - Rs. 87.76

Total - Rs. 769.36

*Weaver/State Govt.

contribution - Rs. 170.40

Total Premium - Rs. 939.76

( i.e.Rs.852.00 + 87.76)

Zone-II (375 Clusters)

Govt. of India Share

Premium - Rs. 559.20

Service Tax - Rs. 71.99

Total - Rs. 631.19

*Weaver/State Govt.

contribution - Rs. 139.80

Total Premium - Rs. 770.99

(i.e.Rs.699.00 + 71.99)

* The minimum contribution by weaver should be Rs.50/- even in cases where the State Govts. are making

contribution on his behalf.

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annual report 2011-12

Table 10.6.

Enrolment and Claims settled under Health Insurance Scheme (upto Dec. 2011)

Policy Year Weavers’ enrolled No. of claims Settled Amount

(Rs. in Cr.)

2007-08 17,74,034 23,62,619 107.09

2008-09 18,78,334 39,50,281 118.04

2009-10 16,11,837 37,46,864 80.71

2010-11

17,97,513

2,61,632 7.08

(Policy period w.e.f.

Dec.,10 to Nov.,11)

(target)

Cumulative Total 70,61,718 1,03,21,396 312.92

2. The Service Provider has been

selected for a period of two policy

years, i.e., 2010-11 and 2011-12.

3. The Insurance Company has its

Cluster Coordinator/TPA in threefourth

of 692 clusters of the country.

4. Insurance Company has established

tie-up with OPD/IPD for cashless

facility in 90% of the handloom

clusters in each State.

5. For settlement of reimbursement

claims, the beneficiary has to submit

a claim within 60 days from the end

date of policy period.

6. The Insurance Company shall settle

such claims within 30 days from its

date of receipt.

7. In case of delay of settlement, of

valid claims, Insurance Company

pays interest on pro rata basis on

the amount @ which is 2% above the

bank rates prevalent at the beginning

of the financial year in the year in

which the claim was received by it.

8. Insurance Company provides web

based access, as far as possible,

to data relating to enrollment, MIS

reports, status of claims, balance

amount left in his account (as a

Statement of Treatment, on demand)

9. Insurance Company conduct health

camps periodically for grievance

redressal, awareness and collection

of claims.

10. Reimbursement claims can be

submitted by the beneficiary through

the Cluster Coordinator of Insurance

Company, TPA, through RPAD or

Courier.

11. A Grievance Redressal Committee

has been formed in all States having

more than 5000 health card holders.

This Committee will constitute of 3

members, will meet monthly to receive

and settle complaints/grievances and

to settle them within 60 days of the

complaint being filed. The cost of the

above Committee will be borne by

the Insurance Company

12. Insurance Company is responsible to

provide all information under RTI or

for Audit purposes to any authorized

Government agency or O/o DCHL,

as and when required.

2.2 Mahatma Gandhi Bunkar Bima

Yojana (MGBBY)

The MGBBY is being implemented

through the Life Insurance Corporation

of India. The contribution of the annual

premium of Rs.470/- per member under

the scheme is at table 10.7.

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ministry of textiles

Table 10.7

Annual Premium of MGBBY

GOI contribution

Rs.290/-

LIC’s contribution

Total premium

During the 11 th Plan, the benefits

available under the MGBBY have been

substantially increased as compared to

what was available during the 10 th Plan

(Table 10.8).

Table 10.8

Comparative Benefits under MGBBY

S.

No.

(i)

(ii)

(iii)

(iv)

Details

Natural

Death

Accidental

Death

Total

Disability

Partial

Disability

Benefits

during the

10 th Plan

Rs. 50,000/-

Rs.80,000/-

Rs.50,000/-

Rs.25,000/-

Benefits

from 1.10.07

Weavers’ Contribution Rs. 80/-

Rs.100/-

Rs.470/-

Rs.60,000/-

Rs.1,50,000/-

Rs.1,50,000/-

Rs.75,000/-

In addition to the above, under the

MGBBY, a Scholarship of Rs.300/- per

quarter per child is paid to students

studying in standard IX to XII for a

maximum period of four years or till they

complete XII standard, whichever event

occurs earlier. The benefit is restricted

to two children of the member covered.

Details of enrolment and claims settled

under Mahatma Gandhi Bunkar Bima

Yojana are given at table 10.9, 10.10

and 10.11.

Table 10.9

Scholarships given under MGBBY

Policy Year

Number of

Scholarships

given

Amount

(Rs. In

Crore)

2007-08 49170 Rs.04.03

2008-09 59173 Rs.05.24

2009-10 72793 Rs.06,87

2010-11 155552 Rs.12.34

2011-12 28470 Rs.04.24

Policy Year

Table 10.10

Enrolments under MGBBY

Weavers enrolled

2007-08 466484

2008-09 575909

2009-10 526317

2010-11 520831

2011-12 6,00,000

(target)

Table 10.11

Claims settled under MGBBY

2008-09 2009-10 2010-11

No.

Amt.

(Rs.

Cr)

No.

Amt.

(Rs.

Cr)

No.

Amt.

(Rs.

Cr.)

2011-12

(upto

Dec.,11)

No.

Amt.

(Rs.

Cr.)

3696 21.1 3491 21.25 3719 22.74 2518 15.46

59173 5.24 72793 6.87 155539 12.30 32770 4.60

3. MARKETING & EXPORT PROMOTION

SCHEME

The Marketing Promotion envisages a

wide gamut of activities for the promotion

and marketing of handloom products,

which inter alia includes (i) Organising

Exhibitions, Events and Craft Melas, (ii)

Setting up of Urban Haats, (iii) Setting

up of Marketing Complexes/Handloom

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annual report 2011-12

Havelies, (iv) Publicity and Awareness

and Brand building, (v) Geographical

Indication Act, and (vi) Handloom House at

Janpath. During the current financial year

2011-12, as on 31 st January, 2012, 740

marketing events have been sanctioned

to various State Governments/ State

Handloom agencies.

Brand building through Handloom Mark

The Handloom Mark has been launched

to serve as a guarantee to the buyer

that handloom product being purchased

is a genuine handwoven product and

not a powerloom or mill made product.

Handloom Mark will be promoted and

popularized through advertisements in

newspapers and magazines, electronic

media, syndicated articles, fashion

shows, films etc. The Textiles Committee

is the Implementing agency for promotion

of Handloom Mark. As on 31st Jan.,

2012, 241.21 lakh (cumulative) handloom

mark labels have been sold to 8737

stakeholders. 812 retail outlets are selling

handloom goods with handloom mark

label.

The new beneficiaries included in the

Handloom Mark Scheme to get the

benefits are: Self Help Groups, Joint

Liability Groups, Consortia, Producer

companies, Handloom Weavers Groups

or any other legal entity, or organization

involved in Handloom activities and

approved by Development Commissioner

for Handlooms with a one time registration

fee of Rs. 500.00.

Sale price of one label has been brought

down from Rs. 1.25 to 60 paise and

application forms are available free of

cost. The Registration fee for individual

weavers is Rs. 25 and for Master weaver

Registration fee is Rs.500.

Handloom Marketing Complex, Janpath,

New Delhi:

Handloom Marketing Complex at Janpath,

New Delhi with the objective to provide

infrastructure support to handloom

agencies to augment their sales is under

construction. This handloom marketing

complex will showcase the exquisite

varieties of handlooms produced all over

the country by the adept weavers and

will also act as a forum for the promotion

of handloom products in the domestic

as well as international markets. The

complex is likely to be completed by the

mid of 2012.

Sant Kabir Award

This award is conferred every year,

beginning from the year 2009, on such

outstanding weavers who have made

valuable contribution in keeping alive

the handloom heritage and also for

their dedication in building up linkages

between the past, present and the future

through dissemination of knowledge on

traditional skills and designs. Weavers

will be conferred every year.

Each award consists of one mounted

gold coin, one shawl and a citation. In

addition, financial assistance to the extent

of Rs. 6.00 lakh is also given to each of

the Sant Kabir Awardee to innovate and

create 10 new products of high level of

excellence, of high aesthetic value and of

high quality. 10 handloom weavers have

been selected to confer Sant Kabir Award

for the year 2009.

Handloom Week

To promote, popularize and create

awareness about the handloom products

Handloom Week is celebrated every year

from 21st Dec. to 27th Dec. During the

Handloom week, number of promotional

and awareness programmes, publicity

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ministry of textiles

through newspapers, magazines, outdoor

publicity, through electronic media were

undertaken.

Marketing Events

The target of marketing events for the

year 2011-12 has been increased to 700

No. from 680 No. sanctioned during the

year 2010-11 to give adequate opportunity

to handloom weavers and their societies

to market their products directly to the

consumers without the intervention of the

middlemen. 740 marketing events have

been sanctioned during the current year

2011-12 till 31 st Jan., 2012.

Exhibition of Handloom Products

Exhibition-cum-Sale of Handloom

Items during the ‘India Day’ at Lal

Bahadur Shastri National Academy of

Administration (LBSNAA), Mussoorie

was organised during July 2011 and

again in Oct. 2011.

A Buyer Seller Meet was organized in

September 2011 at Jaipur to promote

and preserve traditional Kota Doria and

showcased wide range of Kota Doria

products.

A Master Creation Programme has been

organised at Dilli Haat, INA, New Delhi

from 1 st to 15 th Dec. 2011 wherein National

awardees have exhibited their products

for sale directly to the public. Loom

demonstration has also been made during

the programme. An exhibition cum sale

‘Himcraft’ of woolen products developed

in clusters of Himachal Pradesh was held

during the “Handloom Week” on 24-26 th

December, 2011 at India Islamic Center,

New Delhi where the Handloom weavers

exhibited and sold their products to public.

The Geographical Indications of Goods

The Geographical Indications of Goods

(Registration & Protection) Act 1999

provides legal protection to Geographical

Indications of goods etc., and prevents

unauthorized use of these by others. Under

Marketing & Export Promotion Scheme

this office provides Rs.1.50 lakh to register

the handloom items under Geographical

Indications. Financial assistance to register

35 items have been provided by this office

so far to various States.

Export Promotion

The objective of the Handloom Export

Promotion is to assist the handloom

Cooperative Societies, Corporations/Apex

and handloom exporters to participate in

international events, buyer-seller meets

etc. and to make available the latest

designs, trends, colour forecasts etc.

Under this Component, assistance is given

for (i) Export Project, (ii) Participation

in International fairs & exhibitions, and

(iii) Setting up of Design studios. During

the year 2010-11, 03 Export Projects

were sanctioned and various handloom

agencies participated through HEPC in 23

international fairs/exhibitions. During the

current year 2011-12, participation in 22

international fairs have been approved.

4. MILL GATE PRICE SCHEME

(MGPS)

This scheme was introduced during

1992-93 with the objective of providing

all types of yarn to the handloom

weavers’ organizations at the price at

which it is available at the Mill Gate.

National Handloom Development

Corporation (NHDC), Government of

India Undertaking, is the nodal agency

for implementation of the scheme.

All types of yarn required for production

of handloom items are covered under

the scheme. Under the scheme,

the Government of India provides

transportation expenses involved in the

supply of the hank yarn to handloom

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annual report 2011-12

sector. There is also a provision for

supply of yarn through Yarn depots and

expenses of operation of the Yarn depots

@ 2.5% of value of yarn is provided by

Government of India. 788 yarn depots

are operational throughout the country

as on 31.12.2011. Under the Mill Gate

Price Scheme, following assistance is

provided:-

(i) Freight reimbursement for

transportation of yarn.

(ii) Expenses of operating the yarn depot

@ 2.5%, based on actuals.

(iii) Service Charges to the NHDC..

To offset the increase in fuel cost and

ensure availability of arn in handloom

clusters in far flung areas of the country

at the same price at which it is available

at yarn manufacturing mills, the rate of

freight reimbursement for transportation

have been enhanced and revised rate of

freight reimbursement admissible under

the MGPS for supply of yarn is given at

table 10.12.

Table 10.12

Maximum Freight Rate

Reimbursement under the MGPS

Item

Plain

Area

Hills/

remote

Area

NE

Region

Yarn Other than 2.5% 2.5% 5.00%

Silk/Jute

Silk Yarn 1.00% 1.25% 1.50%

Jute/Jute

blended yarn

10.00% 10.00% 10.00%

Supply of yarn by the National Handloom

Development Corporation (NHDC) under

the Mill Gate Price Scheme has gone up

considerably and registered a figure of

1105.96 lakh kgs. valued at Rs.1195.50

crore in the year 2010-11. During the

year 2011-12 (upto Dec., 2011), 638.98

lakh kgs yarn valued at Rs.739.81 crore

has been supplied by the NHDC under

the scheme. The details of yarn supplied

under MGPS during the 11 th Plan is given

attable 10.13.

Table 10.13

Progress of Mill Gate Price Scheme

Year

Qty

(In lakh kg.)

Yarn supply

Value

(Rs. In crore)

2007-08 678.46 563.05

2008-09 855.12 793.77

2009-10 1081.21 987.32

2010-11 1105.96 1195.55

2011-12

(upto Dec.,

2011)

638.98 739.81

10% Price Subsidy on Hank Yarn

To address the issue of yarn availability at

reasonable prices to handloom weavers

and their organization, the Cabinet has

approved on 18 th December, 2011 a new

component 10% Price Subsidy on Hank

Yarn alongwith enhancement of rate of

freight reimbursement (as indicated in

Table 10.10) under MGPS. Under this new

component of MGPS, 10% price subsidy

on domestic silk yarn and cotton hank

yarn will be provided by the Government

to ensure supply of subsidised yarn to

handloom sector.

The National Handloom Development

Corporation, State Governments and their

Apex/Corporations will be implementing

agencies. A yarn pass book will be issued

and the subsidized yarn will be supplied

either to individual handloom weavers

or to their self help groups, cooperative

societies etc., but not to both.

5. DIVERSIFIED HANDLOOM

DEVELOPMENT SCHEME (DHDS)

The Central Sector Diversified Handloom

Development Scheme (DHDS) aims at

125


upgrading the skills of the handloom

weavers through organization of workshops

and exhibitions, design development,

documentation of traditional designs and

providing linkage and meeting the market

requirements. This scheme includes

components such as Strengthening of

Weavers Service Centres/Indian Institutes

of Handloom Technology. Setting up of

new WSCs/IIHTs, National Centre for

Textile Design (NCTD), Research &

Development (R&D) and Conducting

Third Census and issue of Photo Identity

Cards to Handloom Weavers & allied

workers have been major components of

the Scheme during XI Plan. Against the

approved outlay of Rs.24.10 crore, a sum

of Rs.12.48 crore have been incurred till

31.01.12. The component wise progress

is detailed below:

ministry of textiles

Third Handloom Census and issue

of Photo Identiy cards to Handloom

weavers :

The work of conducting “Third National

Handloom Census and issue of

Photo Identity Cards (PIC) to all the

eligible weavers” has been completed

successfully. The report of the Handloom

Census of India (2009-10) was released

on 23.12.2010 and work of issuing Photo

identity cards commenced through

MOS(T) on that day. Subsequently,

the PICs have been delivered to the

State Governments concerned across

the country for onward distribution to

the eligible weavers and allied workers

concerned. The highlights of the census

are given in table 10.14 & 10.15.

Table 10.14

Handloom Units, Weavers and Allied Workers, and Number of Handlooms

(as per Handloom Census)

(Figures in lakhs)

Handloom Units

Weavers and

Allied Workers

No. of Handlooms

1 First Census (1987-88) 29.97 67.4 37.8

2 Second Census (1995-96) 25.24 65.5 34.71

3 Third Census (2009-10) 28.2 43.31 23.71

Table 10.15

Comparative Outcome-as per Handloom Census 1995-96 v/s 2009-10:

Parametre

Second Census

(1995-96)

Third Census

(2009-10)

Mandays’ worked per weaver household (days) 197 234

Share of full time weavers to total weavers 44% 64%

Share of weavers’ household reporting less than a

metre production per day

Share of weavers’ household reporting more than

60% income from handloom and related activities

68% 46%

31% 35%

Share of idle handlooms 10% 4%

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annual report 2011-12

Weavers’ Service Centres (WSCs):

At present, twenty five Weavers Service

Centres (WSCs) are located across the

country. These WSCs pay a vital role in

imparting training to weavers, upgrading

the skill and productivity of weavers.

They have developed new designs and

revived traditional ones. WSCs also

render extension services which involve

transfer of design inputs, skills and

technology to weavers. All the WSCs are

functioning under Non-plan. During the

year 2010-11, a sum of Rs.2799.22 lakh

(Non-plan) had been incurred against RE

budget of Rs.2866.33 lakh. During the

current financial year 2011-12, an amount

of Rs.2560 Lakh has been incurred upto

October,2011 against the budget provision

of Rs.2965 lakh.

Indian Institutes of Handloom Technology

(IIHTs):

The Indian Institutes of Handloom

Technology (IIHTs) provide qualified

and trained manpower to the Handloom

Sector and undertake experimental and

research programmes on all aspects

of the handloom industry. Five IIHTs

are presently functioning each one at

Varanasi, Salem, Guwahati, Jodhpur and

Bargarh in the Central Sector. In order

to cater the needs of handloom sector for

technically qualified manpower, provision

for opening new IIHTs in the Central Sector

wherever required, has been made in the

XI Five Year Plan. In principle approval

for setting up an IIHT at Shantipur (West

Bengal) has been accorded recently

by the Hon’ble Commerce, Industry &

Textiles Minister, vide his announcement

dated 4.11.2011.

Setting up IIHT at Bargarh (Orissa):

In pursuance to the Hon’ble Prime

Minister’s announcement in August,

2006, an Indian Institute of Handloom

technology (IIHT) has been set up at

Bargarh (Orissa) w.e.f. 2.6.2008 from

the Panchayat College Campus, Bargarh

(Orissa). Construction of its own building

is in progress. Against the total cost of

Rs.36.09 crore, an amount of Rs.19.05

crore has been released to CPWD

authorities concerned upto 2011-12 (upto

30.11.2011). Every year, 30 students are

offered admission in three years Diploma

Course in Handloom Technology and 21

students have been passed out their DHT

course till April, 2011 from IIHT, Bargarh.

Apart from the above, four IIHTs are

also functioning at Venkatagiri (Andhra

Pradesh), Gadag (Karnataka), Champa

(Chhattisgarh) and Kannur (Kerala) under

the State Sector.

During 2010-11, an amount of Rs.626.02

lakh was incurred under non-plan by the

IIHTs functioning at Guwahati, Varanasi,

Salem and Jodhpur against the budget

provision of Rs.648.19 lakh (Non-plan).

A sum of Rs.116.91 lakh was incurred by

IIHT Bargarh during 2010-11 against the

budget provision of Rs.148.50 lakh under

the plan head. Similarly, of the provision

of Rs. 153.50 lakh under BE 2011-12

(Plan), an expenditure of Rs. 598.44 lakh

has been incurred up to 31.01.2012.

National Centre for Textile Designs

(NCTD):

National Centre for Textile Designs was

set up in January, 2001 at Handloom

Pavilion, Pragati Maidan, New Delhi to

promote traditional and contemporary

designs to enable the textile industry,

particularly in the Handloom Sector, to be

responsive to the rapidly changing market

demands. The activities of NCTD are as

follows –

● On-line Activities: Include

dissemination of information related

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ministry of textiles



to textile designs through its website

www.designdiary.nic.in. The site

provides information relating to

national and international design

trends and colour forecast, design

pool, and cyber yellow pages, panel

of textiles designers and linkages to

other textiles related sites.

NCTD uploads various designs and

layouts developed by the professional

artists of the Weavers Service

Centres, based on the themes, and

make them available to users and

subscribers.

Off-line Activities: Include holding

of special exhibitions on sustained

basis for increased product exposure

and awareness regarding handlooms

products among the public.

The exhibitions of NCTD are held under

the title “Tantavi”, meaning “of the loom”

in Sanskrit, which is also the registered

trademark of NCTD. NCTD is also making

available the developed fabric samples

to the manufacturers and exporters for

development in large scale to cater local

and export market requirement. NCTD

converted full-length theme based fabric

samples into three-dimensional forms,

and displayed them in the exhibitions,

which drew due attention of the national

level manufacturers and exporters.

NEW INITIATIVES TAKEN DURING

2011-12 FOR THE HANDLOOM

SECTOR

(I) FINANCIAL PACKAGE for

HANDLOOM SECTOR

In the Budget announcement (2011-

12) on 28.2.2011, the Finance Minister

had announced that the Government

of India would provide Rs.3000 crore

for implementing the financial package

for handloom sector on All India basis.

The “Revival, Reform and Restructuring

Package for Handloom Sector” has

been approved with the total financial

implication of Rs. 3884 crore, out of

which Government of India’s share is

Rs. 3137 crore and the share of the

State Governments is Rs. 747 crore. The

component-wise details of the Financial

Package are at table 10.16.

The Package covers loan waiver of 100%

of principal and 25% of interest, which

is overdue as on 31.03.2010 in respect

of weavers and their societies. Interest

subsidy of 3% for 3 years will be extended

from the date of disbursal of the fresh

loan extended by banks to the eligible

handloom cooperative societies and

individual handloom weavers. Fresh loan

extended by the Banks will be guaranteed

for a period of 3 years, for which the

Table 10.16

Component-wise break of Financial Package

S.N. Component Rs. crore

1. Loan waiver and recapitalization of handloom weavers cooperative societies as on

31.03.2010.

2. Waiver of individual weaver loans as on 31.3.2010 500

3. Strengthening of weaver cooperative societies 88

4. 3% Interest Subsidy for fresh loans 180

5. Credit Guarantee for fresh loans 25

6. Training for the functionaries 30

7. Loss assessment exercise & Cost of Implementation 40

3021

Total 3884

128


annual report 2011-12

guarantee fee and other charges will be

borne by the Government.

The Package will require cooperation of

the State Governments, which will have

to sign an MoU for carrying out structural

reforms of the handloom cooperatives

and will have to provide 20% of the funds

for waiver of overdues.

(Ii) Comprhensive Package for

Handloom Sector

To meet the two critical needs of cheap

credit and cheap hank yarn for the

handloom sector, the Government has

approved a comprehensive package

for handloom sector. The components

of comprehensive package will be

implemented through two existing Plan

schemes i.e. Integrated Handlooms

Development Scheme for availability of

cheap credit, and Mill Gate Price Scheme

for availability of subsidised hank yarn.The

brief detail of comprehensive package are

given below:

(i) Credit to handloom sector: For

easy credit availability to handloom

weavers, the Government will provide

assistance for the following:

(a) Margin money assistance

@ Rs.4200 per weaver to

individual weavers by the

Government so as to enable

them to avail fresh loans from

Financial Institutions.

(b) Interest Subvention of 3%

per annum for 3 years will be

provided by the Government

so that handloom weavers and

their cooperative societies can

get loans at subsidized rate of

interest.

(c) Credit Guarantee: The loans

extended by the Financial

Institutions to the handloom

weavers and their Cooperatives/

Corporations will be guaranteed

for 3 years by the Credit

Guarantee Fund Trust for

Micro and Small Enterprises

(CGTMSE). The Government

will pay the required guarantee

fee and annual service fee.

(d) Information, Education &

Communication (IEC) Activity:

A publicity and awareness

campaign will be carried out to

make the handloom weavers

aware of the scheme.

(ii) Yarn supply to handloom sector: To

address the issue of yarn availability

at reasonable prices, the following

benefits have been approved:

(a) 10% price subsidy on domestic

silk yarn and cotton hank yarn will

be provided by the Government

to ensure supply of subsidized

yarn to handloom sector.

(b) The Government has approved

enhancement in the rate of freight

reimbursement for transportation

of different types of yarn used by

the handloom sector in order to

offset the increase in fuel cost.

This will ensure availability of

yarn in the handloom clusters

in far flung areas of the country

at roughly the same price at

which it is available at yarn

manufacturing mills.

The projected financial outlay involved

in the implementation of these proposals

during the current year 2011-12 and

the 12 th Plan period is Rs. 2362.15

crore. The comprehensive package

will benefit all the handloom weavers

and their cooperative societies in the

country as per the budget allocation, in

addition to 3 lakh handloom weavers and

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ministry of textiles

15,000 cooperative societies already

covered under the Financial Package

approved earlier. These interventions

aim at bringing about a paradigm shift by

converting individual weavers into micro

entrepreneurs by empowering them with

cheap credit and yarn. Individual weavers

will now be able to command a better

price in the market for their products.

(iii) HANDLOOM WEAVER CREDIT

CARD (WCC) SCHEME

Handloom sector largely comprises of

small and tiny units, which fall mostly

under the unorganized sector and that

credit needs of a large number of weavers

are being met through informal channels.

The WCC Scheme aims at providing

adequate and timely assistance from

the Banking institutions to the weavers

to meet their credit requirements i.e.

for investments needs as well as for

working capital in a flexible and cost

effective manner. Weaver Credit Card

(WCC) Scheme dovetailed with other

Government programmes will go a

long way in supporting the government

initiatives to fulfill the objective of

financial inclusion. The Scheme will be

implemented both in rural and urban

areas.

(iv) Credit Guarantee through

Credit Guarantee Fund

Trust for Micro and Small

Enterprises (CGTMSE):

The Handloom Sector is in need of short

term credit facilities for working capital

and term loans which are presently

not available easily to the weavers.

Therefore it is proposed to provide a

credit guarantee cover for working capital/

term loan assistance through banks/MLIs

under the Credit Guarantee Fund Trust for

Micro and Small Enterprises (CGTMSE)

Scheme on the lines of a similar Scheme

being implemented for the Handicraft

Sector. Through the Credit Guarantee

Fund Scheme of CGTMSE, this office can

enable credit guarantee cover for working

capital and term loan assistance by

payment of the Guarantee Fees and the

Annual Service Charges on the weavers’

behalf.

The Credit Guarantee Fund Trust for

Micro and Small Enterprises (CGTMSE)

was setup in July, 2000 jointly by GOI

and SIDBI which became operational

from 01 st August, 2000.The trust provides

guarantee cover to both fund and nonfund

based credit facilities including

term loan and working capital facilities

sanctioned by its member lending

institutions without collateral security

and / or 3 rd Party Guarantee to eligible

units in the Micro and Small Enterprises

Sector.

(v) SPECIAL PROJECT FOR

DEVELOPMENT OF TRIPURA

HANDLOOMS.

There are more than one lakh handlooms

in Tripura, of which about 25% are

commercial and rest are non-commercial

or domestic belonging to ethnic tribes/

Bengali/Manipuri weavers. P r e s e n t l y,

due to irregular supply of raw material,

lack of innovative designs and products,

outdated technology in production

process and poor marketing linkages,

the handloom sector in the State is

passing through hard times and many

skilled weavers mainly located in and

around cities and towns have switched

over to other professions. The proposed

Special Project For Development of

Tripura Handlooms is likely to benefit

960 handloom weavers and ancillary

workers because it proposes an overall

development of the dispersed units

spread across the remote interiors of the

hilly terrain

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annual report 2011-12

IMPLEMENTATION OF HANDLOOMS

(RESERVATION OF ARTICLES FOR

PRODUCTION) Act, 1985.

The Handlooms (Reservation of Articles for

Production) Act, 1985 aims at protecting

millions of handloom weavers and

rich cultural heritage of India from the

encroachment on their livelihood by the

powerlooms and mill sector. As per latest

amendment vide No. S.O. 2160 dated

3.9.2008, eleven categories of textile articles

are reserved under the Act. The physical

as well as financial progress of Handloom

Reservation Act, 1985 as on 21.02.2012 is

given at table 10.17 & 10.18.

An Advisory Committee is constituted

comprising of 30 members every 3 years to

advise on issues relating to Enforcement

of the Act.

ASSOCIATION OF CORPORATIONS

AND APEX SOCIETIES (ACASH)

The Association of Corporations and

Apex Societies of Handlooms (ACASH)

is a national level apex organization of

the national level, state level and interstate

level handloom development

corporations and apex handloom

cooperative societies. ACASH was

registered in June 1984 as a society

under the Societies Registration Act 1860

Sl.

No

Table 10.17

Physical Progress of Handloom Reservation Act, 1985

Physical progress 2009-10 2010-11 2011-12

(as on 21.02.2012)

1. Targets for Powerloom Inspections 229040 252103 259000

2. No. of Powerlooms Inspected 197210 264375 219244

3. No. of FIRs. Lodged 12 11 29

4. Convictions 14 9 10

”. The Central Assistance released to the set up Enforcement Machinery in States is given at Table 10.16

Sl.

No.

Name of State

Table10.18

Central Assistance Released to States

Year Wise Amount Released

(Rs.in lakhs)

2008-09 2009-10 2010-11 2011-12 as

on 20.02.12

1. Andhra Pradesh 17.72 96.27 35.32 32.22

2. West Bengal 11.40 7.88 27.98 17.14

3. Gujarat 56.70 57.82 23.83 35.07

4. Rajasthan 28.74 26.06 13.03 13.03

5. Madhya Pradesh 11.73 13.09 8.24 11.16

6. Haryana - 16.10 13.78 11.45

7 Tamil Nadu 23.71 132.78 142.33 66.60

8 Uttar Pradesh - - 28.98 -

9 Kerala - - 56.51 24.60

Total Exp. 150.00 350.00 350.00 211.27

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ministry of textiles

to coordinate and promote marketing

in the handloom sector. Government of

India has appointed ACASH as a nodal

agency for supply of handloom goods to

be purchased by Central Government

Departments / Agencies / PSUs under

Single Tender System. The national

and state level handloom corporations

and apex societies whose names were

notified by the Office of the Development

Commissioner for Handlooms, Ministry

of Textiles for production and supply of

handloom goods through ACASH, are

members of ACASH. ACASH is also

involved in helping the promotion of

handloom exports. Supply of handloom

items to Central Govt. Ministries/Deptts/

PSUs under Single Tender System:

During the current financial year 2011-

12 (1 st April 2011 to 31st January 2012),

ACASH has received orders worth Rs.

6379.52 lakhs and executed orders worth

Rs. 5536.61 lakhs under Single Tender

System.

Handloom Expos/Exhibitions

During the financial year 2011-12, ACASH

had organized the 22 exhibitions till date

(Table No. 10.19) and details regarding

proposed exhibitions at table 10.20.

Table 10.19

Organisation of Exhibitions by ACASH

S.No EXHIBITION PERIOD SALE (Rs. In lakh)

1 Silk & Cotton , Palampur 30.05.11 to 10.06.11 49.34

2 Silks & Cottons , Solan 18.06.11 to 03.07.11 49.35

3 Home furnishing , Delhi 06.08.11 to 21.08.11 16.82

4 Silk & Cotton , Gurgaon 26.08.11 to 11.09.11 54.60

5 Paridhan , Delhi 15.09.11 to 29.09.11 46.16

6 Silks & Cottons , Bhubneshwar 21.12.11 to 03.01.12 49.00

7 Silks & Cottons , Delhi 01.10.11 to 14.10.11 45.05

8 India Weave , Delhi 16.10.11 to 31.10.11 279.52

9 Silks & Cottons , Delhi 16.11.11 to 30.11.11 43.77

10 Handlooms 2011, Delhi 14.11.11 to 27.11.11 123.15

11 Handloom Cluster Expo, Ahmedabad 08.10.11 to 23.10.11 60.00

12 Silk & Cotton , Jaipur 09.12.11 to 22.12.11 60.86

13 National Handloom Expo , Chennai 21.12.11 to 03.01.12 298.56

14 Silk & Cotton , Delhi 16.12.11 to 31.12.11 472.46

15 Silk & Cotton , Patna 21.12.11 to 03.01.12 125.00

16 Silk & Cotton , Mumbai 21.12.11 to 03.01.12 39.17

17 Silk & Cotton , Kokata 21.12.11 to 03.01.12 45.82

18 Silk & cotton , Indore 30.12.11 to 13.01.12 28.80

19 Shawl Show , Delhi 23.12.11 to 05.01.12 33.23

20 Silk & Cotton, Chandigarh 29.12.11 to 07.01.12 81.82

21 Silks of India , Delhi 11.01.12 to 25.01.12 90.11

22 Silk & Cotton , Jalandhar 28.01.12 to 12.02.12 45.10

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annual report 2011-12

Table 10.12

Proposed Exhibitions to be organized by ACASH

S.No. Name of the Event

Period

1 Sarees of India , Delhi 11.02.2012 to 26.02.2012

2 Silk & Cotton, Patiala 03.03.2012 to 18.03.2012

3 Cotton of India , Delhi 11.03.2012 to 25.03.2012

4 Silk & Cotton , Amritsar 30.03.2012 to 15.04.2012

5 Handloom Cluster, Mumbai March, 2012

6 Handloom Cluster, Kolkata March, 2012

7 Handloom Cluster, Chennai March 2012

8 Handloom Cluster, Delhi March 2012

9 Silk & Cotton, Dharamshala 17.03.2012 to 31.03.2012

10 Silk & Cotton, Chandigarh 18.02.2012 to 04.03.2012

11 Silk & Cotton, Jodhpur 17.03.2012 to 31.03.2012

12 Silk & Cotton, Bhopal 24.03.2012 to 06.04.2012

13 Silk & Cotton, Dehradun 10.03.2012 to 25.03.2012

ALL INDIA HANDLOOM FABRICS

MARKETING COOPERATIVE

SOCIETY LTD. (AIHFMCS):

The All India Handloom Fabrics Marketing

Cooperative Society Ltd., New Delhi

was established in 1955 with the twin

objectives of developing inter-State and

International Trade for handloom fabrics

produced by the handloom weavers of the

country. The Society is governed under

the Multi-State Co-operative Societies

Act, and comes under the jurisdiction

of Central Registrar of Cooperative

Societies, New Delhi. The membership of

All India Society shall consist of registered

Apex Handloom Weavers Co-operative

Societies having at least 50 (fifty)

Primary Handloom Weavers Cooperative

Societies (‘A’ Class), registered Primary/

District Level Handloom Weavers’ Cooperative

Societies (‘B’ Class) and (a)

State Government; (b) Government

owned/controlled Corporations engaged

in production and sale of handloom

products; and (C) Such class or classes

of persons or association persons as

may be permitted by the Central Registrar

(‘C’ Class). During the year under review,

the Society had a total of 1112 members

comprising 23 (‘A’ Class), 1056 (‘B’

Class) and 33 (‘C’ Class) members. The

Society had a paid-up share capital of

Rs.7,64,25,000/- consisting of 141282

shares as on 31 st March, 2011.

The main objective of the Society is

to organize and develop markets for

handloom goods both within the country

and abroad. To achieve this objective,

the Society has set up a chain of retail

showrooms known as “Handloom House”

at various places in the country. During

the year 2010-11 (April to November

2010), there were 24 such Handloom

Houses in Ahmedabad (2), Chandigarh,

Chennai (3), Coimbatore, Ghazipur,

Gorakhpur, Gurgaon, Hyderabad, Kolkata

(3), Lucknow, Salem, Madurai, New Delhi,

Ranchi, Surat, Thiruvananthapuram,

Thrissur, Varanasi, & Visakhapatnam. The

Society has its Export Houses at Chennai,

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ministry of textiles

Noida and Karur. The Society has also got

its branches at Singapore and Mauritius

giving an impetus to marketing of Indian

Handlooms in the foreign markets.

During the year 2010-11, the Society’s

sales turn-over was ` 3587.24 against

Rs.3892.22 lakh during the previous year.

The domestic sales during the year under

review amounted to Rs.2877.85 lakh as

against Rs.3279.97 lakh reported in the

previous year. The Society’s exports

during the year 2010-11 were of the order

of Rs. 709.39 lakh as against the figure of

Rs. 612.25 lakh in the previous year.

The Society reportedly has recorded a

net profit of Rs.17.63 lakh during the year

under review and the Society has been

working in profit consequently for the last

51 years.

NATIONAL HANDICRAFTS &

HANDLOOMS MUSEUM (NHHM):

The National Handicrafts and Handlooms

Museum also known as Crafts Museum is

located at Pragati Maidan, New Delhi. It

is a subordinate office of the Development

Commissioner for Handlooms, Ministry

of Textiles. Its main objectives are

to increase public awareness about

India’s ancient traditions of Handicrafts

and Handlooms, provide an interactive

forum for the Craftpersons, designers,

exporters, scholars and public and

help craftspersons to find a platform for

marketing without middlemen and to

serve as a resource centre for Indian

handicrafts and handlooms traditions.

Collection, conservation and preservation

of crafts specimens, revival, reproduction

and development of art and craft are the

basic activities of the Museum.

Museum collection

The Museum has a collection of over

32,000 artifacts consisting of metal

icons, lamp and incense burners, ritual

accessories, items of everyday life, wood

carvings, painted wood and paper mache,

dolls, toys, puppets, masks, folk and tribal

paintings and sculptures, terracotta, folk

and tribal jewellery and an entire section

of traditional Indian textiles. They are

exhibited in the Folk and Tribal Art Gallery,

Temple Gallery, Court Craft Gallery and

Textile Gallery and the rest are housed in

the Museum Collection store.

Crafts Demonstrations Programme

The Museum attempts to support

traditional handicrafts and handlooms

through its regular Craft Demonstration

Programme organized round the

year. Craftspersons are invited for the

Craft Demonstration Programme to

demonstrate their skills and also for sale

of their products. Around 204 Craftsmen

were invited from various States for the

Crafts Demonstration Programme and

around 28 performers also participated in

the Museum upto November 2011. For the

remaining four months, upto March 2012,

about 200 Craftsperson and performers

are expected to participate in Museum

activities.

Research and Documentation

The Research and Documentation work

consists of two activities i.e. field research

and documentation of craft persons.

The Research and Documentation

of traditional Indian Handicrafts and

Handlooms is an important activity of

the Craft Museum. Under this scheme,

the Museum provides funds to scholars

to undertake fieldwork to document the

traditions of Handicrafts and Handlooms,

including Folk & Tribal Arts.

The documentation of 232 craftspersons,

who have participated in Crafts

Demonstration Programme of the

Museum, was completed upto November,

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annual report 2011-12

2011. Also a detailed crafts documentation

report was prepared for Warli Painting of

Thane District of Maharashtra, Folk Baul

Singing of Bengal, Calligraphy art work

on wood, Rangoli and Brocade weaving.

Village Complex

The Museum’s Village Complex is a

reminiscence of rural India with structures

of village dwellings and courtyards from

various parts of country. The complex

was set up in 1972 as a Rural India

Complex. The Complex displays typical

huts, characteristic of various regions

of the country, wall and courtyards

decorated with traditional “folk painting”.

The Complex includes:-

Kulu Hut (Himachal Pradesh); Mehar Hut

(Sourashtra, Gujarat): Gadba Hut (Orissa)

Banni Hut (Gujarat); Madhubani courtyard

(Bihar); Adi Hut (Arunachal Pradesh);

Nicobar Hut (Andaman & Nicobar Island);

Typical courtyard of a hut (Jammu &

Kashmir); Rabha Hut (Assam); Naga Hut,

(North Nagaland); Toda Hut (Tamilnadu)

and Gond Hut (Madhya Pradesh); Shrine

of Devanarayan (Rajasthan) and Bengal

Courtyard (West Bengal).

Four open-air theatres have also been

developed in the complex, namely:

(i) Kadambari Theatre, (ii) Saranga

Amphitheatre, (iii) Angan Manch, (iv)

Pilkhan Manch

Library

The Museum has a specialized reference

Library with more than 20,000 reference

books and other periodicals on traditional

Indian arts, crafts, textiles and major

anthropological works on Indian tribes etc.

Research scholars and students from

various institutions regularly visit the

Museum. Around 550 persons have

visited the Library in this period and 500

books and 100 magazines were issued

for reference upto November, 2011.

Conservation and Preservation

The main function of the Conservation

and Preservation Section is preventive

and curative care of different types of

materials/objects. This work is carried

out round the year.

The Museum has chemically treated

3400 various objects, lining and darning

of 126 objects, fumigation of 80 objects,

mounting, stitching, repairing, lamination

of textiles, paintings, making of polythene/

clothes bags of 361 objects, pedestal

clothes stitching/covering of 72 objects.

Besides these activities, insecticide

spray, cleaning and chemical treatment,

fumigation, covering of open display

objects, preventive conservation were

carried out in the Village Complex, stores,

permanent galleries, Museum Court yard

and Library upto November, 2011. These

activities will continue for the next four

months upto March, 2012.

During the period the Crafts Museum

organized various exhibitions, seminars/

events and participated in an exhibition

in Washington, D.C.

Exhibitions

1. ‘Devi: Representations of the goddess

from across India’.

2. ‘The Camel in Crafts’ in collaboration

with ‘Dastkar’ a society for crafts and

crafts people.

3. ‘Costumes of the Imagination:

Mexican Dress of Indian Influence’

in collaboration with the Embassy of

Mexico.

4. ‘Maximum India’ an Exhibition of

Indian Crafts and Handlooms,

Washington D.C. (objects sent on

loan).

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Events

1. ‘Nature Bazaar Fair’ for exhibition and

sale of handicrafts and handlooms

from across India, in collaboration

with Dastkar.

2. ‘Bal Sangam’ festival of children’

theatre with the National School of

Drama.

Seminars

1. Craft, Economics and Impact Study

seminar with Crafts Council of India.

2. Lecture/Discussion on “History and

Activities of the Crafts Museum” for

German Delegation from Humboldt

University, Berlin.

3. Workshop on “Multi Media

Laboratories in Museum” with

University of Modena and Reggio

Emilia, Italy.

4. Workshop on ‘Museum Inventory’

with UNESCO.

Visits by Eminent Persons/Delegations

Several international delegations visited

the Museum, including groups from

Mobilier National, France, Humbolt

University in Germany, Europalia in

Belgium and Officina Emilia, Italy.

Educational Programme

Delhi based scholars, art colleges, and

polytechnics are regularly informed by

the Museum about monthly activities.

Thousands of school children and

students of Art Colleges visited the

Museum to view India’s craft heritage.

14964 students, 3545 colleges/

polytechnics/institutions visited the

Museum. Besides this, 6 delegations

visited Museum upto November, 2011.

Under the Educational Programme

students of ITIHASS (an NGO),

Sarvodaya Kanaya Vidyalaya No. 2,

S.K.V. Asaf Ali Road, New Delhi110002

and S.K.V., Shakarpur, Madhuban

Road, New Delhi participated in Craft

Workshops.

Financial Progress

There is a financial outlay of Rs. 536.46/-

lakhs under Non-Plan out of which Rs.

292.06/- lakhs has been spent upto

November, 2011.

HANDLOOM EXPORT PROMOTION

COUNCIL (HEPC)

Handloom Export Promotion Council

(HEPC) is a nodal agency set up by the

Ministry of Textiles, Government of India

to promote the exports of all handloom

products like fabrics, home furnishings,

carpets and floor coverings, etc. HEPC

was constituted in the year of 1965 with

96 members and its present membership

is 1453 spread all over the country. HEPC

has its head office at Chennai and regional

offices at New Delhi.

The primary objective of HEPC is to

provide all support and guidance to

the Indian Handloom exporters and

International buyers for trade promotion

and International marketing. The major

handloom clusters are Karur, Kannur,

Panipat & Madurai where the exportable

handloom products like tablemats,

placemats, embroided textile materials,

curtains, floor mats, kitchenwaresetc are

produced for export markets. Besides

this, other centres like Kekra, Varasani,

Bhagalpur, Shantipur, Jaipur, Ahmedabad,

Warrangal, Chirala, Poochampally, and

Sampalpur also contribute significantly

to the handloom exports. Chennai,

Delhi, Mumbai and Kolkata are having

large number of merchant exporters

who source their products from these

centres. The following are the activities

of the Council.

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annual report 2011-12

1. Dissemination of trade information

and intelligence to the member

exporters.

2. Publicity abroad for Indian Handloom

products.

3. Facilitating product diversification and

adaptation to meet modern market

requirements.

4. Providing impetus to modernization

of handlooms for the export market.

5. Provision of design inputs to promote

exports of handloom products.

6. Organizing business mission/buyer

seller meet and participation in trade

fairs abroad.

7. Consultancy and guidance services

for handloom exporters.

8. Liaison with the Government of India

on all procedural and policy matters

relevant to the handloom export

trade.

9. Dealing with trade complaints

pertaining to handloom exports.

10. Liaison with import promotion and

commercial agencies abroad for the

benefit of handloom exporters.

Targets and Achievements

The export data has been made

available for Handloom products with

effect from April 2009 onwards. As per

the export data received from the Office

of the Director General of Commercial

Intelligence & Statistics, during 2009-10 it

was Rs.1252 crores (US $ 278 million).

Target fixed for handloom exports is US $

300 (Rs. 1350 crores) for the year 2010-

11. The achievement during the year was

Rs.1662.89 crores. There is a growth of

32.73% during the year 2010-11 over the

period of 2009-10. For the year 2011-12,

the target has been fixed as US $ 500

million. i.e. Rs. 2250 crores. With the

growth rate of 34.90% it is anticipated

that the handloom exports would reach

the target.

As per the statistics, U.S.A. is the

leading importer of handloom products

contributing nearly 45.88 % of our exports.

EU as a group contributes nearly 33% of

our exports. After U.S.A., Germany, U.K.,

France, Italy are the leading importers

in EU. Followed in the list are Australia,

-Belgium,U.A.E.,Netherlands, Sweden

and Canada Japan occupying 6,7,8,9

and 10 th positions respectively. Among the

products of exports toilet linen & kitchen

linen tops the list followed by Table cloth

and Table Covers, Cushion covers, Printed

Bed linen, Other Furnishing articles, Mats

and Mattings including Bathmats etc.

Pillow cases and pillow slips, etc.

Export Promotion Activities of HEPC’S

during the year 2011-12

1. HEPC has participated in 16

International fairs till December,

2011 which includes 2 exploratory

participation and two International

fair in India.

2. In order to sensitise the handloom

Industry about the intricacies involved

in export trade HEPC has been

organizing awareness seminars

across the Country periodically. During

2011-12, HEPC has organized a

Seminar at Varanasi on 13th October,

2011, Bhubaneshwar on 28.01.2012

and Santipur on 31.01.2012.

3. Consequent on the phenomenal

success of the India International

Handwoven Fair (IIHF), HEPC is

organizing the second edition of the

fair at Chennai Trade Centre, Chennai

from 27 th to 29 th March, 2012. This fair

is organized under the MAI Scheme

of Ministry of Commerce and Industry

with the component of Reverse

Buyer Seller Meet, by inviting 100

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foreign buyers and 50 buying houses.

Nearly 150 member exporters will be

participating in this fair to showcase

their handloom products.

4. Design Studio: In order to devise

the design strategy with a complete

re-orientation of the products

manufactured by the Handloom

sector to suit the international market,

HEPC has set up a Design Studio at

Kannur in Kerala during November

2008 and at Hyderabad in Andhra

Pradesh during September 2010 with

MAI Assistance.

5. Publications: Coffee Table Book –

The Empowered Committee of MAI

Scheme has approved the proposal

of HEPC for publishing 2000 copies

of Coffee Table Book on Handwoven

textiles and a sum of Rs. 50.00

lakhs has been sanctioned, ensuring

display of information about the

Council and Indian manufacturers/

exporters of the products, for sourcing

by foreign buyers. This book is aimed

at highlighting the rich heritage and

diverse product ranged of Handwoven

textiles and the socio-economic

importance of Indian handloom

industryto create a global brand and

strategically position Hand-woven

textile items. This publication is likely

to be completed by March, 2012.

Setting up of Design Studio

In order to cover the following activities

and services, Design Studios at Kannur

and Hyderabad have already been

commissioned. They provide the following

services:



Create new designs based on client’s

needs

Adapting and modifying designs

from sketches or fabrics submitted

by client, to meet a price or other

consideration.






To analyze the latest trends

To forecast the change in motif, colour

etc.

Create new designs based on the

analysis and forecasting for the

manufacturers

To provide latest in technology by

way of related software

The outlay for each Studio is Rs.66.00

lakh, of which MAI assistance has

been Rs.45.00 lakh.

Handloom Export Zone (HEZ)

In order to create a supply hub for the

manufacture of identified export products

, HEPC has conceived a novel project

of its kind with a market linkage known

as “Handloom Export Zone”, which

is currently under implementation at

various handloom clusters at Nagercoil,

Kancheepuram district, Thiruvannamalai,

Virudhunagar and Thiruvalluvar district

in Tamilnadu to meet out the following

objectives:






create a supply hub for manufacturing

identified export products ( focus

product)

Provide quality products by imparting

training on quality aspects and by

supplying accessories for quality

control

Increase the wage earning capacity of

weavers by increasing productivity by

way of loom , pre loom up gradation

Improve the work environment by

providing basic amenities like toilet,

water facilities etc.,

Establishing market linkage with

merchant exporters

The project has been implemented

in Kanya Kumari Distt. of Tamil Nadu

financial assistance from Asian

Development Bank. The project has

enhanced livelihood of 300 handloom

weavers in 8 WCSs.

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annual report 2011-12

CHAPTER XI

HANDICRAFTS

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ministry of textiles


annual report 2011-12

CHAPTER XI

HANDICRAFTS

Inauguration of India Carpet Expo by Hon’ble Minister of State for Textiles

Smt. Panabaaka Lakshmi

The Handicrafts Sector plays a

significant & important role in the

country’s economy. It provides

employment to a vast segment of craft

persons in rural & semi urban areas and

generates substantial foreign exchange

for the country, while preserving its cultural

heritage. Handicrafts have great potential,

as they hold the key for sustaining not

only the existing set of millions of artisans

spread over length and breadth of the

country, but also for the increasingly

large number of new entrants in the crafts

activity. Presently, handicrafts contribute

substantially to employment generation

and exports. The Handicraft sector

has, however, suffered due to its being

unorganized, with the additional constraints

of lack of education, low capital, poor

exposure to new technologies, absence of

market intelligence, and a poor institutional

framework. In spite of these constraints,

sector has witnessed a significant growth

and efforts are being augmented during the

current plan on the following core issues

for the development of the sector.


Providing infrastructural support for

production & exports

● Improve quality & product

diversification with more awareness

for both stakeholders & consumer.


A greater role for NGO as implementing

partners and participation of private

resources – both human and

financial.

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ministry of textiles

The sector is estimated to employ Rs

68.86 lakh artisans at present the export

of handicrafts including handmade carpet

April December 2011 has been 10651.93

crores which shows an increase of

30.97% over the same period in financial

year 2010-11, and the plan allocation is at

present Rs. 245.00 crores in 2011-12.

Handicrafts activity being a State subject,

its development and promotion are the

primary responsibility of every State

Government. However, the Central

Government is supplementing their efforts

by implementing variousdevelopmental

schemes:

SCHEMES ON HANDICRAFTS

DEVELOPMENT

During the XIth Plan the Government

of India has implemented six generic

schemes in the central sector for holistic

growth and development of handicrafts

sector in the country. The schemes

recommended for implementation during

11 th five year plan are as under :

I. Baba Saheb Ambedkar Hastshilp

Vikas Yojana

This scheme aims to promote Indian

handicrafts by developing artisans’

clusters into professionally managed

and self-reliant community enterprise

on the principles of effective member

participation and mutual cooperation.

The thrust of the scheme is on a project

based; need based integrated approach

for sustainable development of handicrafts

through participation of craftspersons. This

would lead to their empowerment. The

components of the scheme are as under:

A. Social interventions

i. Diagnostic Survey and formulation of

Project Plan

ii. Community empowerment for

mobilization of artisans into Self Help

Groups

iii. Issuance of Identity cards to the

artisans(Departmental activity)

B. Technological interventions

i. Development and supply of improved

modern tools

ii.

Design and Technical Development

Workshops

iii. Integrated Design and Technical

Development workshops.

iv.

Training of artisans

v. Organizing Seminars &

Symposiums.

vi. Technological status and need based

study and research provision.

C. Marketing interventions

i. Organizing Exhibitions

ii. Publicity through printing and

electronic mode and brand building

campaign

iii. Setting up of Handicrafts emporia

in own/rented/outright purchase of

building and renovation