Textile sector turned the corner after UPA's arrival: Vaghela

Ahmedabad, Nov 13 (UNI) The textile sector had turned the corner after the installation of the UPA government at the centre, with production and exports touching new highs, Union Textile Minister Shankersinh Vaghela today said.

''The sunset sector during the NDA regime has now been transformed into a sunrise sector under the UPA government, the minister said.

Addressing mediapersons here under the aegis of Cotton Corporation of India (CCI), Vaghela said with five per cent interest subsidy under the Textile Upgradation Fund (TUF), the total investment has jumped to Rs 33,000 crore from Rs 7,174 crore in 2002-03. Only under TUF Rs 25,000 crore were distributed.

About 25 lakh employment was generated while exports too rose viz, to US by 26 per cent and Europe 18 per cent. In dollar terms it was from 13 million dollars to 21 million dollars, he said.

Today, CCI is making commercial purchases of cotton from the farmers and therefore Minimum Support Price (MSP) is not needed now in Gujarat, Mr Vaghela said adding the farmers are getting more for their produce.

He praised the Gujarat farmers in this context and said the credit goes to the farmers and not to the state government as it has not contributed anything to it.

He said that MSP has been started in Andhra Pradesh and Maharashtra.

In 2004-05, about 9.5 lakh bales of cotton worth Rs 900 crore were exported, while in '05-06 it was 47 lakh bales worth Rs 4,500 crore.

Gujarat exported 28 lakh bales worth Rs 28 crore. This year 30 lakh bales are expected to be exported.

Vaghela spoke about the turnaround that had been achieved in the 2004, '05 and '06 budgets with the industry benifitting from the 10 to 12 per cent capital subsidy to processing units and the slashing of excise duty on manmade fibres from 16 to eight per cent. Custom duty was cut from 15 to 10 per cent and this move boosted large scale production and exports.

UNI VNB MJ/OBB KR HT1712