Panel asks govt to remove cotton export curbs

NEW DELHI, AUG 17: The high-powered S R Sathyam committee, set up to suggest inputs for a new textile policy, has asked government to rem...

NEW DELHI, AUG 17: The high-powered S R Sathyam committee, set up to suggest inputs for a new textile policy, has asked government to remove all curbs on exports of raw cotton and cotton goods, including yarn, and drop the mandatory hank yarn obligation for spinning units.

In its report, submitted to textile minister Kashiramrana, the committee has also suggested dereservation of all goods earmarked exclusively for the handloom sector.

The committee, which has laid stress on meeting global competition in the wake of the domestic market being thrown fully open to multi-nationals from the year 2004 on the expiry of the WTO agreement on textile and clothing ATC, had in particular asked government to free raw cotton exports and end the monopoly procurement of cotton by Maharashtra government.

Currently, government allows only five lakh bales 170 kg of raw cotton for exports annually at the beginning of the crop year October-September. Under the Maharashtra monopoly procurement scheme, all cotton grown in the western state is bought over by the cotton growers cooperative there.

Other significant inputs by the committee are to make a beginning in technical textiles production, bringing down levies on man-made textiles to increase its domestic use and increased stress on human resources development and training for personnel.

In recommending immediate measures to government to start production of technical textiles, the committee said it had potential to grow on par with apparel sector.

Technical textiles are fabrics mainly synthetics used in various industrial applications like aircraft body, auto interiors, syringes, fire fighting clothing and space research.

Story continues below this ad

While recommending that government do away with the statutory hank yarn obligation, the panel said it should be done only after establishing dyeing units in clusters where handlooms functioned.

The statutory hank yarn obligation stipulates spinning mills to produce 50 per cent of the goods meant for domestic market in hank yarn form. This is to ensure that the handloom sector get the required yarn for weaving.

As part of measures to meet increasing global competition, particularly after ATC expiry, the committee asked government to de-reserve the 11 items currently earmarked for the handloom sector.

The 11 items reserved for handloom sector are saree, dhoti, towel, gamcha and angavastram, lungi, bedsheets and bed covers, durries, dress material, barrack blankets, shawls, woollen tweed and bed sheets.