Cotton production in 1998-99 is likely to increase to 127.7 lakh bales of 170 kg each as against 111.4 lakh bales in 1997-98.

Maharshtra and Gujarat has taken the lead in production of cloth. The per capita availability of cloth has increased to 30.92 sq metres in 1997-98 from 26.22 sq metres in 1993-94. In 1994-95, the per capita availability of cloth increased to 25.98 sq metres, thereafter it steadily increased to 27.99 sq metres in 1995-96 and to 29.30 sq metres in 1996-97.

To encourage more production the Centre reconstituted the Cotton Advisory Board within the purview of the Cotton Control Order, 1986. The Board will be chaired by the Textile Commissioner and consists of representatives from Union ministries of agriculture, science and technology and representatives from state governments of Andhra Pradesh, Maharashtra, MadhyaPradesh, Tamil Nadu, Rajasthan and Punjab. Amongst the cotton growers there are two representatives from Gujarat and one each from Rajasthan, Andhra Pradesh, Maharashtra and Uttar Pradesh.

Indian Cotton Mills Federation, All India Federation of Cooperative Spinning Mills and the National Textile Corporation are some of the main representatives on the Board.

In a bid to boost the exports of cotton yarn, the Union textile ministry said that ceiling of 200 million kg should be increased to 300 million kg for the year 1999.

It may be recalled that the exports of cotton yarn, after having struggled for major part of the financial year 1998-99 primarily due to the crisis in south-east Asian economies, have finally turned around with exports notching up an impressive growth of 9.5 per cent during the first month of the current financial year. The exports of cotton yarn during April 1999 were recorded at Rs 586.39 crore as against Rs 535.55 crore in April 1998.

The Empowered Committee consisting ofrepresentatives from Union ministries of commerce, textiles, industry and agriculture also decided that EPCG units will also be given the same relaxation as 100 per cent EOUs for the year 1999 to export cotton yarn without any restrictions pertaining to count/sourcing of domestic cotton as long as such exports are within the prescribed ceiling.

It has also been decided that there would be no restrictions on exports of cotton waste by 100 per cent EOUs. However, the quantity of such exports will be as per the norms to be determined in this regard and also the exporters would be required to register with the Textile Commissioner as prescribed in the Exim Policy. Deemed exports will be exempted from hank yarn obligation.

Meanwhile, the Chairman of The Indian Cotton Mills' Federation (ICMF), Sudhir Thackersey, has criticised the polyster stable fibre (PSF) industry for unwarranted rise in prices of their products. He said that in the last three months, domestic producers of PSF have been incessantlyescalating the prices. In March, the price of indigenous PSF was around Rs 40.50 per kg which increased to Rs 52 per kg on June 15 thus effecting a hike of about 28 per cent.

He demanded that the PSF producers should refrain from escalating their prices in view of the current plight of textile industry and especially when the production of spurn yarn and mill-made fabrics has registered a decline in 1998-99 and the number of closed mills has increased from 223 in April 1998 to 313 in March 1999.

In this context, Thackersey pointed out that current fiscal policy enabled PSF producers to raise frequently the prices. The prevailing rate of basic custom duty is 35 per cent. In order that textile mills could obtain PSF at competitive prices, the custom duty should be brought down to 20 per cent.