The country’s textile policy was last specified through the Textile Policy Statement of June 1985. Prior to this, the development of the textile industry was guided by policy announcements in March 1981 and August 1978. The stated objective of the textile policy of 1985 was an increase in production of cloth of acceptable quality at reasonable prices to meet the clothing requirements of growing population. In pursuit of this objective, the employment and export potential of the industry were also to be kept in view.

 The national policy is a broad statement and covers every aspect of the textile industry. However, in order to cater to the specific needs of individual states, there is a felt need for a State Level Policy. As evident from the introductory paragraphs above, the textile industry continues to play a vital socio-economic role in Tamil Nadu. Hence, the need for a dynamic, growth oriented policy is all the more important.

• The objective of our State textile policy will be to produce textiles to cater satisfactorily to the quantity,quality and price requirements of both domestic and international markets, keeping in view the industry’s potential for employment.

• In an increasingly globalized economy, industries will have to be more market-driven than ever before. Therefore, any strategy designed to meet this objective will have to start with the markets and work backwards. This involves identification of markets, the products for each market and the inputs required for each product including the raw materials, technology, human and financial resources and the institutional arrangements required to link and deliver each of these effectively. Simultaneously, value addition at every stage should be enhanced so that the producers have a sound motive not only to continue, but also modernize and upgrade their technology and skills. The unifying themes which will therefore run through this process will be greater measures of "Market-orientation" and "value addition".

• Wherever Government desire to encourage an activity, they will do so primarily by providing infrastructure support and escort services in all cases except where specific financial support is contemplated.

Cotton dominates the handloom industry in the country, accounting for 83% of all production. Cotton blends accound for another 5% while non-cotton cloth is only 12%. The textile industry of the state today is cotton based to the extent of 89%. Tamil Nadu produces only 1/6^th of its cotton requirements and the balance is met by purchases from up-country markets.

Tamil Nadu’s cotton area went up from 2.29 lakh hectares in 1993-94 to 2.6 lakh hectares in 1995-96, producing 4.71 lakh bales (170 kgs of lint each). It is grown mainly under rainfed conditions, the extent of which increased from 1.47 lakh hectares in 1993-94 to 1.58 lakh hectares in 1994-95. During the same period, the irrigated coverage increased from 0.82 lakh hectares to 0.97 lakh hectares accounting for a 13.1% share among non-food crops and 2.7% share among all crops. In 1994-95, the cotton area irrigated was about 38% of the sown compared to the all-India figure of 33%. This irrigated area accounted for 63% of the total cotton production of the State. However, yield has not been satisfactory. While the average yield during the period 1985-86 to 1989-90 was 293 kgs/hectare, during the period 1990-91 to 1994-95, it was only 292 kgs/hectare. It decreased sharply from 316 kgs/hectare in 1993-94 to 293 kg/hectare in 1994-95. The corresponding figures for irrigated conditions were 489 kh/hectare and 484 kg/hectare and for rainfed conditions were 219 kg/hectare and 176 kg/hectare respectively.

Therefore, Government will actively encourage increasing cotton production and productivity within the State.

1. Since a co-ordinated approach will be necessary, involving soil survey, production technology including seed certification and replacement, irrigation, selection of high yielding varieties and appropriate technology for upgrading all cotton ginning and pressing, a State Cotton Council will be set up to carry out functions analogous to various product/commodity development councils at the national level.

 

2. Cultivation of cotton on commercial and /or contract farming basis will be encouraged. For this purpose, the steps necessary under the present land ceiling and other laws will be taken.

 

3. By encouraging the planting of cotton in the non-traditional areas of the State, a 3% annual growth rate for the next 5 years in the area under cotton will be aimed at. Simultaneously, a 5% annual increase in productivity will be attempted by encouraging drip irrigation in rainfed areas and by popularizing high-yielding hybrid varieties. The resources of the newly set up Agri Development Finance Corporation (Tamil Nadu Region) as a subsidiary of NABARD are proposed to be fully utilized for this purpose.

 

4. Research on the production of eco-friendly, pesticide-free varieties and naturally coloured varieties will be encouraged in recognized and reputed research institutions.

YARN

Our spinning industry includes 18 Co-operative Spinning Mills and a large number of mills in the private sector. Barring one, all co-operative spinning mills have been set up by weaver’s co-operative societies and not by the growers or those engaged in ginning and pressing. This has led to a basic conflict as the interests of the weavers take precedence over the interests of the other stake-holders.

1. Government proposes to conduct detailed diagnostic studies on each of the co-operative spinning mills and draw up and implement need based rehabilitation/renovation plans.

2. The cotton growers will increasingly be involved in the management of these mills. Any new spinning mills to be set up in the co-operative sector will also be by growers co-ops.

3. The Government will co-ordinate with banks and term lending institutions to encourage modernization of all spinning mills to improve their productivity and quality.

4. Our spinning mills have shown considerable reluctance in meeting their statutory hank yarn obligation of 50% of their production. It has been argued by the mill sector that since handloom fabrics account only for 23% of the total fabric production of the country, there is insufficient justification for continuing the 50% hank yarn obligation. This results in periodic shortages of hank yarn with consequent price instability. Government will encourage the spinning sector to create and promote co-operatives/ancillaries using appropriate technological solutions for reeling hank yarn, subject to the necessary clearances from the appropriate authorities of central excise and sales tax.