chapter viii wool & wollen textiles industry - Ministry of Textiles

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
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