New textile policy aims to double export earnings

PANCHKULA, APRIL 21: The Union government will announce in the ongoing budget session of Parliament a new textiles policy aimed at doublin...

PANCHKULA, APRIL 21: The Union government will announce in the ongoing budget session of Parliament a new textiles policy aimed at doubling export earnings from the sector from the present Rs 60,000 crore to Rs 1,20,000 crore in the next five years and preparing the backward domestic sector for the opening of the market under the WTO regime from January 2005.

This was announced here today by Union textile Minister Kanshiram Rana at a press conference organised immediately after signing of a memorandum of understanding (MoU) by the Technology Mission on Cotton under his ministry, Haryana State Agriculture Marketing Board and Ellanabad marketing committee for improvement of Ellanabad Market yard.

Rana said that the draft of the policy which will encompass related sectors is in an advanced stage of finalisation to be put before the Union cabinet.

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He said that the policy apart from bracing up the domestic garment, textile and jute sectors for intense competition, will address issues like duty structure, competitiveness, anti-dumping, child labour, dye an chemical, strategy for unorganised sector and employment in the sector among other things.

The Minister expressed confidence that the opening up of the market will offer India a "world of opportunities" which are now bein g scuttled through quota, child labour clause, anti-dumping measures, duties and safety of dyes and chemicals.

He announced that a technology mission on jute is in the offing which will help Indian jute sector grow and become internationally competitive.

The Minister said the new policy is coming after 15 years and that the old one was out of place.

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Giving details about measures taken to improve the sector and prepare the domestic industry for the open market, he said "we have launched a Rs 600 crore technology mission on cotton, arranged Rs 25,000 crore for the sector and provided five per cent subsidy on bank rate to make available cheap loans to textiles sector.

The Minister informed that the export quota policy has recently been announced for the period of 2000-2004 adding that the government will not open any textile unit under its control.

Rana said that he was hopeful that voluntary retirement scheme (VRS) will be accepted by workers of the National Textile Corporation (NTC) to enable certain units function.

He said that 90 per cent of the industry is in the unorganised sector which employs most of around two crore-strong work force in the sector, requiring special attention of the new open market regime which will bring competition.

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Terming the whole sector backward due to obsolete technology and machinery with the low productivity of cotton crop, he said to face competition the sector has to change fast.