According to the Annual Survey of Industries (92-93). Tamil Nadu was the 3^rd largest industrial state in the country. The gross output of its industrial sector was Rs.37,986 crores, accounting for 10.3% of the national output. Its net value added of Rs.7,303 crores was also 10.3% of the national figure. Cotton textiles was prominent among the industry groups that contributed to this ranking. In terms of gross output value, cotton textiles increased from 18.8% of the national share (ranked 2) in 1982-83 to 32.2% (ranked 1) in 1992-93. In terms of net value added, the corresponding figures were 18.4% (ranked 2) and 37.4% (ranked 1). Other textile products accounted for 20.3% of the national gross output value (ranked 2) in 1992-93 and 22.3% of that year’s net value added (ranked 2). However, in 1995-96, the textile sector as a whole in Tamil Nadu registered a disturbing negative growth rate.

1. When we look at Tamil Nadu’s Textile Sector, in 94-95, the total yarn production in the State was 695 million kgs, fully 33.3% of the country’s production. Within this, the production of cotton yarn was 611 million kgs, being 38.5% of the country’s output and blended and manmade fibres accounted for 84 million kgs, 16.7% of the national output. This was the output 617 textil mills (44.2% of the country), comprising 595 spinning mills (52.7%) and 22 composite mills (8.2%) accounting for a total of 98.7 lakh spindles (32.5%). Included in the spinning mills are 18 co-operative spinning mills accounting for 4.69 lakh spindles and 34 million kgs of yarn, a quantity sufficient to meet roughly half the hank yarn requirement of the State.

3. In 1994-95, Tamil Nadu also produced 187 million metres of cloth, 11% of the national production, of which cotton accounted for 93 million metres (8.4%) and blended varieties accounted for 94 million metre (15.8%). This was the output of 7.7 lakh looms, being 5.1% of the country’s loomage. Of this, 4.3lakh looms were in the handloom sector and 3.4 lakh in the powerloom and composite mill sectors.

AREAS OF CONCERN

1. The number of handlooms in Tamil Nadu enumerated at 4.3 lakh in the last Handloom Census in 1987-88 includes looms which were considered "active". According to the present norms, a loom is considered to be "active" if it has not been "idle". An idle loom is one which has remained idle at least for a year preceding the date of enumeration. Studies by the Department of Handlooms & Textiles in the late 1991’s have shown that there is a steady decrease in the number of handloom weavers at the rate of 2% per year. Therefore, the number of working handlooms has also been steadily decreasing. Pending confirmation by another detailed survey, it is likely that the actual number of working handlooms may not exceed 2.5 lakh.
   

2. Despite being a craft activity, handloom weavers are not a homogeneous group with respect to income earned by them. Studies by the Institute of Rural Management, Anand, in the 1980s have shown that handloom weavers fall into 3 distinct categories 12% in High income (Silk) 36% low income (janata varieties) and the remaining 52% in middle income (blended fabrincs,furnishings). The low income group has not been able to upgrade quickly to the higher income brackets, but has been leaving handloom weaving altogether.

 

3. The productivity of handlooms has not been registering any significant increase. This has made the handlooms at the lower end of the value spectrum engaged in production of simple weaves very vulonerable to competition from the much more productive powerloom sector. For instance, even the scheme of Free Distribution of Sarees and Dhoties of the Govt. of Tamil Nadu which started with the objective of providing sustained employment to the handloom weavers now procures as much as 75% of its requirements from powerlooms in the co-operative sector.
   

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4. Production and productivity of cotton in the country has not made significant strides over the years. Further, the prices of cotton are strongly influenced by international production trends and prices as well as the trade policies of the Govt. of India. Despite these uncertainties, cotton continues to predominate the textile industry. However, the clothing needs of the poorer sections of society are better served by increasing the use of synthetic fibres like polyester as these fabrics are lower in both initial and maintenance costs, more durable and more easily maintained than pure cotton fabrics. This is the trend worldwide as cotton fabrics are considered to be primarily for the wealthier sections of society. Therefore, ensuring the availability of such synthetic fibres at the right prices is an area that needs attention.

                                               

5. After delicensing, the spinning sector has undergone a drastic change. A large number of small spinners (up to 3000 spindles each) have proliferated. For instance, the South India Small Spinner Association claims that it accounts for 25 lakh spindles and 10 million kgs of yarn, the bulk of which is in Tamil Nadu. This has certainly led to an increase in the yarn availability. However, these units are predominantly cotton based and vulnerable to the vagaries of the volatile cotton and yarn markets. In fact, their demand for cotton is itself a factor contributing to the volatility of the cotton market. Therefore, the problems of increasing sickness among these units continues to cause concern.

 

6. Tamil Nadu is a major player in the Indian textile industry in terms of production and export of yarn, fabrics, knitwear, madeups-and garments. Consequently, it is a major consumer of cotton and other raw materials and intermediates. However, the markets for all these items are greatly influenced by international trends as well as the trade policies of the Government of India. At present, Tamil Nadu, despite its significant presence in the industry, is not actively associated in the policy making processes of the Government of India affecting the industry. It is felt that in all such matters, the State should actively be involved in the decision making process.