Question : Production of Cotton Yarn

(a) the details of the total quantity and value of cotton yarns produced during each of the last three years;

(b) whether the exports of cotton yarns have declined this year in comparison to last year and if so, the reasons therefor;

(c) whether the fall in demand for cotton yarn in the domestic and export markets have reduced the capacity utilization of textile mills, if so, the details thereof;

(d) the steps taken by the Government to address the afore-mentioned problem and to boost the competitiveness of Indian cotton yarn in the international market; and

(e) whether the Government plans to modify the Merchandise Export Incentivisation Scheme to encourage exports to other countries and if so, the details thereof?

MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)

(a): Production of cotton yarns (million kg) during last three years is as under:-

Year million kg
2013-14 3,928
2014-15 4,055
2015-16 4,138

(b): Yes, exports of cotton yarn have declined this year as compared to last year due to decrease in imports by China (India’s top export market for cotton yarn). Details of export of cotton yarn during 2014-15, 2015-16 and 2016-17(April-August) are given below:-

(Quantity in MN KG ,Value in MN US$)

ITEMS 2014-2015 2015-2016 2015-16 (Apr-Aug) 2016-17(Apr-Aug)

Qty Value Qty Value Qty Value Qty Value
Cotton Yarn 1,256 3,961 1,327 3,622 545 1571 438 1229

(c): No, capacity utilization of textile mills has not reduced.

(d): Government has announced various export promotion schemes such as Duty Drawback Scheme, Market Access Initiative (MAI), and Market Development Assistance (MDA) to boost competitiveness of Indian cotton yarn in the international market.

(e): The Government modifies the MEIS as per prevailing export circumstances to ensure the competitiveness of Indian exports in global markets.

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