The Hindu Business Line : Rs 100-cr subsidy for cotton exporters likely

Mr Shankarsinh Vaghela, Minister for Textiles, with Mr R.K. Dalmia, Chairman, Diamond Jubilee Conference, at the 8th International & 60th All-India Diamond Jubilee Textile Conference in Mumbai on Sunday. — Shashi Ashiwal

Mumbai , Dec. 5

THE Union Government is proposing to allocate Rs 100 crore towards subsidy to help cotton exporters tide over pricing problems. The proposal, according to the Minister for Textiles, Mr Shankersinh Vaghela, would have to cleared by the Finance Ministry but would help cotton growers get a commensurate price for their cotton.

Mr Vaghela was speaking at the Eight International and 60th All India Diamond Textile Conference organised by the Textile Association of India in Mumbai on Sunday.

He said that the size of the Technology Upgradation Fund (TUF) would also be enhanced and that increased investments in the textile industry would result in creating employment for another 2 lakh people.

He added that there were plans to raise the current 5 per cent subsidy given to processing units to 8 per cent.

Mr Vaghela said that Rs 60 crore was earmarked to upgrade apparel parks and growth centres; Rs 40 crore for the Cotton Technology Mission and Rs 20 crore to the Cotton Corporation of India for the procurement of cotton.

He said Rs 15 crore has been allocated for the implementation of the Textile Workers Relief Fund for the employees of closed mills. Sick textile mills, he said, would be wound up and viable units would be strengthened.

Regarding the post-quota era, Mr Vaghela said, "We must not forget that the post-quota era will be a fierce market where only the best will be patronised. We must prepare to face the new challenges."

The Minister also laid out hopes that the technical textiles segment would capture a 10 per cent share of the global market by 2010.

He added that Indian textiles exports could grow at 18 per cent a year to reach $40 billion by 2010.

India is also set to become the second biggest supplier to the US with its share bouncing up to 15 per cent from the current 4 per cent.