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Mr Shankersinh Vaghela (right), Minister for Textiles, with Mr Gautam Hari Singhania, Chairman and Managing Director, Raymond, at the apparel fabrics & accessories trade fair in Mumbai on Monday. — Paul Noronha

Mumbai , Oct. 10

THE Union Minister for Textiles, Mr Shankarsinh Vaghela, on Monday said that the Cotton Corporation of India (CCI) would buy cotton at minimum support prices (MSP). When asked how Indian cotton would fare worldwide as prices had dipped considerably, he said that worldwide the cotton yield was low, while in India this year the cotton output was expected to be about 280 lakh bales which is considerably higher than last year.

He added that the CCI would mop up the cotton on offer, but only at MSP rates. He added that exports would be about five lakh bales this year. He was speaking to newspersons after inaugurating the Worldtex India and CMAI-organised exhibition of fabric, apparel and accessories fair in Mumbai — Intex.

He said the textile sector had shrugged off its previous moniker of a sunset industry and was now considered a sunrise industry. He said that the industry accounted for 14 per cent of industrial production and directly employed 38 million people, and 50 million indirectly.

According to Mr Vaghela, India's export progress was heartening as it registered a 20 per cent growth in the April-August period this year, against the corresponding period last year. He said that the Ministry was considering policies that supported this sector.

He added that one such plan was to set up 25 textile parks. He said that Rs 17 crore was being earmarked for apparel parks and Rs 20 crore for the Textile Centre Infrastructure Development Scheme (TCIDS). These are expected to come up in the next 18 months. He added that this year's Budget had increased the allocation for the Technology Mission to Rs 80 crore from Rs 40 crore to strengthen the cotton (the raw material) base.

He added that the allocation for the Technology Upgradation Fund (TUF) Scheme had been increased to Rs 435 crore from Rs 284 crore in 2004-05.

He urged foreign investors to consider India for investments, since it was an attractive market to source products from; he added that price was usually not the only criteria for such activity.

Mr Gautam Singhania, Chairman and Managing Director, Raymond Ltd, said that the country was going through a very interesting phase. He said it had probably seen its highest growth phase. He said that the India-China comparison needed to be placed in perspective — China would get volumes and India value business.

He said that this year alone, Raymond had invested over Rs 800 crore in its business and had signed three joint-venture agreements as well. He added that the TUF Scheme had resulted in huge investments in the Indian industry, through which the segment would witness exponential growth.

The three-day fair is hosting 125 exhibitors from 12 countries.

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