(a) whether there is shortage of cotton, particularly long-staple cotton in the country and if so, the details thereof;
(b) whether Indian cotton textile industry is facing stiff competition in foreign markets and if so, the details thereof; and
(c) the details of the steps taken by the Government for the brand promotion of Indian Textiles and access to global markets?
MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)
(a): There is no shortage of cotton in the country. India is a net cotton surplus country where cotton production is more than consumption. Long staple cotton constitutes about 80% of total cotton production. During the cotton season 2017-18 (October to September), the production of seed cotton (kapas) was 370 lakh bales whereas consumption is only 319.06 lakh bales.
(b): As per data of Directorate General of Commercial Intelligence and Statistics (DGCI&S), exports of cotton textiles has been increased by 11% from US$ 11,190 million in 2017-18 to US$ 12,429 million in 2018-19.
(c): To encourage the domestic apparel sector for the brand promotion of Indian textiles and access to global markets, Government announced key reforms under a Special Package that includes additional incentives under the Amended Technology Upgradation Fund Scheme (ATUFS), relaxation of Section 80JJAA of Income Tax Act and introduction of fixed term employment for the apparel sector. Government is providing rebate of State and Central taxes/ levies embedded in manufacturing, assistance to exporters under Market Access Initiative (MAI) Scheme. Under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), Government is providing entire 12% of Employer’s contribution towards Employees’ Provident Fund (EPF) and Employees Pension Scheme (EPS). The rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel & made ups and 5% to 7% for handloom & handicrafts. The interest equalization rate for pre and post shipment credit for exports done by Micro, Small and Medium Enterprises (MSMEs) of textile sector has been enhanced from 3% to 5%. The benefits of this scheme have also been extended to merchant exporters which was earlier limited to only manufacturer exporters.
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