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G. Srinivasan

New Delhi , May 11

THE Government is embarking upon an ambitious Rs 500-crore quality improvement project for cotton in the next couple of years.

Sources in the Government told Business Line that countries such as Egypt and Pakistan have been able to supply quality cotton-based products and capture the global market in textiles and clothing in the post-quota regime from January 1 this year. Now, the onus is on Indian producers to compete in terms of quality and price for cotton-based yarn and fabrics.

The sources said in order to improve the productivity and quality of cotton, the Government launched Technology Mission on Cotton (TMC), comprising of four mini-missions. The Ministry of Agriculture and the Ministry of Textiles jointly implement these four missions.

The Ministry of Textiles has been implementing two missions pertaining to cotton processing facilities by upgrading/modernising the existing ginning and pressing facilities and setting up of new market yards/improvement of existing market yards.

Against the Tenth Plan (2002-07) intended expenditure of Rs 250 crore for the Mini Mission III and IV of the Technology Mission on Cotton, it is now proposed to step up this outlay to Rs 500 crore. This would help improve the quality of cotton by reducing the contamination content from the prevalent 8 to 10 per cent to one and a half per cent, the globally acceptable level, the sources said.

Under the Mini Mission Three, which aims at development of market infrastructure, the expenditure on development of market yard is shared between the Union Government and the respective Agriculture Produce Market Committee of the State Government in the ratio of 60:40.

However, the Central Government's assistance is limited to Rs 90 lakh for improvement of existing yard and Rs 1.50 crore for setting up new market yard.

A report card of the progress achieved under the development of market infrastructure, reveals that 112 project proposals (setting up of 17 new market yards, improvement of 80 market yards and activation of 15 market yards) had been sanctioned between February 2002 till March 2005. Out of this, 87 market yards have reported completion with the highest of 25 in Gujarat, followed by Andhra Pradesh of 20.

Under Mini Mission IV for modernisation of ginning and pressing factory, the Government provides capital incentive at 25 per cent of the cost of the modernisation subject to a limit of Rs 20 lakh and the balance is borne by the ginning and pressing factory owner.

Besides, additional incentive at 25 per cent of the cost subject to the limit of Rs 7 lakh for installation of new bale press and Rs 4 lakh for installation of grading laboratory is also extended by the Union Government.

The sources said modernisation of 473 ginning and pressing factories have been sanctioned at an estimated cost of Rs 623.96 crore out of which the Union Government's share would be Rs 108.71 crore. Till March 2005, 300 factories have reported completion.

The sources are quite confident that as the Ministry of Textiles is embarking upon stepped-up outlays for the III and IV components of mini missions on cotton, the quality of cotton fibre would get not only improved but also strengthened so that the resultant end-product based on quality fibre would fetch handsome export proceeds.

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