Chapter-V Cotton Textile Industries of Maharashtra, Problems and Prospects
Chapter-V Cotton Textile Industries of Maharashtra, Problems and Prospects
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Introduction
The Maharashtra state was recognized on 1 st May 1960 by rearrange the
former bilingual Bombay state. The bilingual Bombay state itself was formed in 1956.
When all the three nearest Marathi speaking regions namely western Maharashtra,
Vidarbha and Marathwada were brought together under single entitle for management
and governance. The industrial growth was unequal in these three regions. The state
governments therefore, strongly center of attention on a promotional programs to
make the state homogenize industrially. As a result, Maharashtra has not only
preserved its topmost industrial reputation but also made itself unique with a glorious
development unsurpassed by any other state in the country. Within the state of
Maharashtra itself there has been a remarkable development in industry and
commerce since 1960.1
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widened road network of 2.41 lakh km. all these roads connected about 97.8 per cent
villages.3 It has best surface transport facilities and connectivity with sea ports and
airports has resulted into good transport system. State has highest installed capacity
and generation of electricity in the country. All this has made to state the most
favourable destination for investment.
Cotton was the most important commodity traded in ancient Maharashtra. The
Maharashtra was the main center for cotton trade in Ancient time. In the journey
description known as ‘periplus of the Erythren Sea’, there is a clear reference to the
cotton trade of ancient Maharashtra. It is specifically mentioned that ‘Tagar’ was the
most popular center known for the manufacturing of the muslin and ordinary cotton
cloth.4
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centre during satvahana period. Paithan was also well-known for the manufacturing of
a rich variety of cloth, which was on high requirement in foreign market at that time.
Periplus mentioned that paithan and tagar were the two prominent cotton textile
markets. Textile products of tagar were on high demand in other business centres too.
1. Govardhana: Govardhana was a very large textile industrial centre in ancient
Maharashtra.7 This govardhana has been identified with govardhana- gangapur a twin
Villege situated on the banks of Godavari, 10 kilometers west from Nasik. This
identification confirms that Nasik region was on the trading map of ancient
Maharashtra. Textile was the major product of exports from govardhana area. There
was weaver’s guild in this textile mart. As govardhana was positioned on a trading
route and connected with important trading centers like Dhenukakata in the south,
paithan and tagar as well as nasikya in the east and kaliyana and suparaka on the
kokan coast in ancient Maharashtra.
2. Kaundiyapur: Kaundinyapur was a satvahana market centre locates on the banks
Vardha River in Amravati district. It was a renounced centre for small or cottage
textile industry. Textile products were marketed from here.8 The large scale spindle
whorls discovered in kaundinyapur excavation. In the periplus, cotton textiles and
valuable stones are point out as the major commodities exported through Broach
(Bhrugukatch) port to west Asia, Europe and Africa. Now a day Achalpur in
Amravati district has a few handlooms remain static.
3. Paunar: Paunar was a centre of cottage spinning industry, eleven spindle whorls
were found in the excavations and they proved substantially the existence of cottage
spinning in the township.9 Cotton threads was one of the commodities which were
exported from paunar. Paunar was located in Vidarbha region of today’s Maharashtra
state.
4. Nevasa: Nevasa was an industrial centre of the satvahana period. However textile
industry was one of the local industries, cotton products of this place were very
popular. The region was fruitful with rich quality cotton.10
5. Tagar: Tagar was one of the two most important business centres of ancient India.
It was international trading centre having business contacts with Roman market. At
the same time it was a prosperous internal mart in ancient Maharashtra.11 Tagar has
now rightly been identified with ‘Ter’ a village on the banks of Terna River, located
18 kms, to the south west of osmanabad a district headquarters in Marathwada region
of Maharashtra state. Textile industry of tagar was very prosperous. It was one of the
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prominent industrial towns in ancient Maharashtra and producing export quality of
textile; rich muslin cloth of tagar was on high demand in foreign market. Common
cloth of all varities was also manufactured there. The fertile black soil of Godavari
and its tributaries was largely a cotton belt producing large quantity of cotton even in
ancient Maharashtra.
As per cotton advisory board, there was 41.25 lakh hectares area under cotton
cultivation in Maharashtra which is 33.87% against India, for the year 2011-12.
Further production of cotton lint was 76 lakh bales (20.71%) only, against 367 lakh
bales in India during the same year. During 2011-12, average yield of cotton in
Maharashtra was 313 kgs per hectare which is below 38.86% than India’s average
yield which was 512 kgs per hectare. Maharashtra has rank first in regards area
covered (33.87%) under cotton cultivation and 2 nd largest producer of cotton
(20.71%) in India whereas Gujarat covered 24.32% area producing 33.24% cotton
which is highest in the country. Tamil Nadu was highest in productivity (831 kg.) per
hector, and then Gujarat was second with producing 700 kg per hector. (See Table
5.1)
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Table 5.1: State-wise Area, Production & Yield of cotton (2011-12)
Average Variation
Production
Area Yield (In %)
States (lakh bales
(Lakh hectare) (Kgs. per to Average
of 170 kgs)
hectare) Yield of India
Maharashtra 41.25 (33.87) 76.00 (20.71) 313 -38.86
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Diagram 5.1: State-wise cotton productivity/yield (in kg. per hectare)
Table 5.2:
Area, Production & Productivity/Yield of Cotton in Maharashtra
Production
Area Yield
Growth (Lakh Growth Growth
Year (Lakh (Per ha.
% bales - 170 % %
ha.) Kg.)
Kg. each)
2002-03 28.00 - 26.00 - 158 -
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Graph 5.2: Area, Production & Productivity/Yield of cotton in Maharashtra
Maharashtra state has nearly 26 cotton growing districts along with 09 districts from
Vidarbha region, 08 districts form Marathwada region, 03 districts form North
Maharashtra (Khandesh) and remaining 06 districts form Western part of Maharashtra
(See table 5.3).
Top ten districts in regards area and production consisting five district form
Marathwada, four districts from Vidarbha and one district form North Maharashtra
(Khandesh). As per as highest area concern under cotton cultivation, Jalgaon (1),
Yavatmal (2), Aurangabad (3) and Jalna (4) are respectively. Likewise highest
performance in cotton production, Jalgaon (1), Aurangabad (2), Jalna (3) and
Yavatmal (4) are correspondingly (graph 5.4). as per as productivity concern Solapur
(1), Aurangabad (2), Dhule (3) and Latur (4) were shown highest performance in
2010-11 (See Graph 5.5).
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Table 5.3: District-wise Area, Production & Yield of cotton (lint) in 2010-11
Sr. Yield
Districts Area (Hectare) Production (Bales)
No. (Bales/Hect.)
1 Jalgaon 509700 (12.93) 1097100 (14.68) 2.15
2 Yavatmal 479800 (12.17) 775900 (10.38) 1.62
3 Aurangabad 332900 (8.45) 879200 (11.77) 2.64
4 Jalna 303300 (7.69) 776600 (10.39) 2.56
5 Nanded 302100 (7.66) 462200 (6.19) 1.53
6 Beed 276800 (7.02) 422200 (5.65) 1.53
7 Buldhana 251500 (6.38) 436100 (5.84) 1.73
8 Parbhani 232400 (5.90) 404800 (5.42) 1.74
9 Amravati 204300 (5.18) 336200 (4.50) 1.65
10 Wardha 190600 (4.84) 263000 (3.52) 1.38
11 Akola 167800 (4.26) 268900 (3.60) 1.60
12 Dhule 133100 (3.38) 335900 (4.50) 2.52
13 Ahmednagar 101700 (2.58) 221100 (2.96) 2.17
14 Chandrapur 93300 (2.37) 126300 (1.69) 1.35
15 Hingoli 81900 (2.08) 133300 (1.78) 1.63
16 Nagpur 80800 (2.05) 126000 (1.69) 1.56
17 Washim 62000 (1.57) 128700 (1.72) 2.08
18 Nandurbar 56000 (1.42) 116600 (1.56) 2.08
19 Nashik 50500 (1.28) 100600 (1.35) 1.99
20 Osmanabad 18200 (0.46) 38700 (0.52) 2.13
21 Latur 3400 (0.09) 8000 (0.11) 2.35
22 Solapur 1800 (0.05) 5200 (0.07) 2.89
23 Satara 1600 (0.04) 1300 (0.02) 0.81
24 Sangli 3500 (0.09) 4100 (0.05) 1.17
25 Gadchiroli 2800 (0.07) 4300 (0.06) 1.54
26 Kolhapur 100 (0.00) 200 (0.00) 2.00
State Total 3941900 (100) 7472500 (100) 1.90
Source: http://www.cicr.org.in Central Institute for Cotton Research (CICR)
161
Graph 5.3: Top 10 districts in Area & Production of cotton in 2010-11
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Table 5.4 shows triennial average of cotton (lint) in Maharashtra as well as
India for the years of 2007-08 to 2009-10. Triennial cotton average was 304 kg per
hectare in Maharashtra against 424 kg per hectare in India. That means it was less
28.30% (120 kgs per ha.) as compare to India’s triennial cotton average during that
particular years. During 2007-08 to 2009-10, the average area under cotton crop was
3,244 thousand hectares in Maharashtra which was 33.6% as compare to India. During
Kharif season of 2011-12, there was 28.05% (4,167 thousand hectares) of the total
area under cotton crop in the state. The Production was 6,820 thousand bales (170 Kg.
each).
To make the agricultural activity more viable as well as to protect the farmer’s
economy from natural calamities and low prices offered by traders, the government of
India declares Minimum Support Price (MSP) for selected crops. Under this scheme,
procurement in the State is undertaken by the Maharashtra State Co-operative Cotton
Growers Federation (MSCCGF). The MSP for cotton crop was Rs. 3300 per quintal
in 2011-12 and Rs. 3900 per quintal in 2012-13.12
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Table 5.6: Cotton Textile Mills in Maharashtra as on March 2007
Maharashtra’s
Items Unit Maharashtra India share in India
(In %)
Cotton textile mills Number 286 3248 8.8
As on March 2007, Maharashtra has 8.8% cotton textile mills as compare to India
along with 157 thousand employees engaged which was 17.8% as against India.
Maharashtra state was produced 308 lakh kg (9.3%) spun yarn and 20 million square
meter cloth which was 13.8% as compare to India. (Table 5.6)
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Table 5.7: Textile Industries in Maharashtra: At A Glance 2011-12
Particular Maharashtra India
Cotton /Man-Made Fibre Textile Mills: 190 (9.71) 1957
Spinning mills (Non-SSI) 153 (8.69) 1761
Composite mills (Non-SSI) 37 (18.87) 196
Spinning mills (SSI) 27 (2.02) 1336
Exclusive weaving mills (Non-SSI) 60 (34.68) 173
100% Export Oriented Units (EOUs) 4 (20) 20
Powerloom units (lakhs) 2.87 (55.19) 5.20
No. of Powerlooms (lakhs) 11.77 (51.21) 22.98
No. of Handlooms (lakhs) 5718 (0.24) 23.77
Workers on Roll:
Spinning & composite mills (Non-SSI) 100402 (11.70) 858152
Spinning mills (SSI) 2259 (4.18) 54085
Exclusive weaving mills (Non-SSI) 6631 (21.01) 31557
EOUs 1458 (20.04) 7272
Production of Fibres:
Raw cotton (Lakh bales) 74.00 (20.84) 355
Capacity Installed (‘000):
Spindles (Non-SSI + SSI) 4611 (9.56) 48.25 (million)
Rotors (Non-SSI + SSI) 46199 (5.99) 7.71 (lakh)
Looms (organised sector) 13359 (20.24) 0.66 (lakh)
Cotton Consumption By Mills (‘000 kg.) 370169 (9.32) 3971714
Production of Yarn By Mills (‘000 kg.):
Cotton yarn 257777 (8.24) 3126342
Blended yarn 70487 (8.93) 789287
100% Non-cotton yarn 39372 (8.61) 457084
Total spun yarn 367636 (8.41) 4372712
Fabric Production (‘000 sq. mtr.): (Million sq. mtr.)
Cotton 172488 (5.64) 30570
Blended 15518 8468
100% Non-cotton 55 21415
Total 224061 60453
Per capita availability of cloth (sq. mtr.) -- 40.96
Source: compiled from official data of textile commissioner, Mumbai.
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As per records of textile commissioner, there were 190 cotton + man-made fibre
textile mills (Non-SSI) during 2011-12 in Maharashtra, out of which 153 are under
spinning category and remaining 37 belong to the composite category. Further 27
small scale spinning mills in Maharashtra. Moreover 60 mills were exclusively
weaving mills (Non-SSI) simultaneously. The installed capacity in spinning mills
(SSI + Non-SSI) was 9.56% (4611 thousand) as regards spindles in Maharashtra as
against India (48.25 million) in 2011-12.
The cotton consumption by mill sector was nearly 9.32% (370169 thousand
kg.) as against India (3971714 thousand kg.) Similarly the production of cotton yarn
was only 8.25% (25777 thousand kg.) as compare to the India (3126342 thousand kg.)
simultaneously. The mill sector is more organised than powerloom and handloom
sector. It is because of the fact that this sector is dominated by the capitalists.
Meanwhile, the cotton fabric (cloth) production was 5.64% (172488 thousand sq.
mtrs.) in Maharashtra as compare to India (30570 million sq. mtrs.) because of major
share in powerloom sector.
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Table 5.8: Category-Wise & Management-Wise Cotton/Man-Made Fibre Textile Mills (Non-SSI)
No. of Textile Mills in Maharashtra
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Table 5.8 shows the number of textile mills (Non-SSI) in the state those
belongs two categories viz. spinning and composite. It also classified by management
like public, co-operative and private sector. Mills those under the public sector are
belong to National Textile Corporation (NTC) and State Textile Corporation (STC).
There were total 190 mills in 2013, out of which 87 (45.79%) belong to co-op. sector,
83 (43.68%) belong to private sector and 20 (10.52%) mills belong to public sector.
The details about production of spun yarn in Maharashtra made by cotton, Blended
and also from 100% non-cotton fibres since 2003-04 to 2012-13 are given below:
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Table 5.10: Fibres-wise Production of Spun Yarn in Maharashtra
(In '000 kg.)
100%
Cotton Growth Blended Growth Growth Growth
Years Non - Total
Yarn % Yarn % % %
Cotton
2003-04 209115 - 59176 - 30086 - 298377 -
2004-05 218363 4.42 56880 -3.88 35485 17.95 310728 4.14
The Production of spurn yarn exposes the spinning capacity of mill sector. The details
are given in above table 5.10. There is more than 70% yarn made by cotton fibre in
the state. It is clearly seen that the production of cotton spun yarn reduced in the year
2008-09 and 2011-12. During 2011-12, Maharashtra state produces about 367636
thousand kgs spun yarn as different fibres like cotton, blended & 100% non-cotton
yarn which was 8.40% as compare to India. The share of cotton yarn is 8.25%
(257777 thousand kg) as compare to India.
Figures of Non-SSI exclusive weaving mills in Maharashtra during the last six years
are given table 5.11 below. In 2012, Maharashtra state has 60 (34.68%) weaving mills
as against 173 weaving mills in India. There are 70.20% (3286) looms belonging non-
automatic in the state which was 51.48% as compare to Indian weaving mills. Around
70% looms are Non-Auto remaining is Auto, shuttle less and semi-auto in some
extent. It is essential to point out that the modernization is quite necessary in weaving
mills in the state.
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Table 5.11: Installed Capacity & Workers on Roll in Exclusive
Weaving Mills in Maharashtra (Non-SSI)
No. of Types of looms Knitting Workers
Year
mills machine on role
Non-auto Auto Shuttle less Semi-auto Total
2008 62 3352 331 800 40 4523 84 6102
The details about number of closed mills with spindles, roters, looms and
workers are affected due to closure of cotton/man-made fibre textile mills are shown
in present table 5.12. In Maharashtra, total 64 mills were closed those comprise 47
spinning and 17 composite mills upto march 2013. One thing observed that the
closure of mills highly increased after 2011; consequently lakhs of spindles as well as
thousands of roters and looms are closed. Moreover, the 35846 workers affected due
to this closer position.
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Table 5.13: Disbursement under Textile Workers Rehabilitation
Scheme (TWRFS) since Its Inception (upto March, 2011)
No. of workers
No. of Mills paid No. of workers Amt. disbursed
Particular on
relief paid (Rs. in Lakh)
Roll of the mill
Maharashtra 06 9958 7962 2348
There were 6 mills got relief under textile workers rehabilitation scheme (TWRFS)
upto march 2011 in the state as against 91 mills benefited in India. By this scheme
total 7962 workers paid relief with Rs. 2348 lakh in Maharashtra state.
The average daily employment in textile sector (organised) of Maharashtra during last
fifty years is given in table 5.14 above. It may be stated that the average daily
employment is decreasing in textile sector of Maharashtra. It was 3,69,100 in 1961
come down upto 2,04,500 in 2010.
The maximum number of strikes and workers were participated during 1971 to 1981,
when textile mills of India located in Mumbai (Bombay). It is observed that the
industrial disputes were coming down after 1981 in the state. Most of the textile mills
of Bombay were closed down during 1970 to 1980. (See table 5.15) The textile
industry in Bombay were nearly finished upto 1985 due to labour strike, lock out. At
that time the prices of land property was very high in Bombay.
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Table 5.15: Industrial Disputes in Textile Mills in Maharashtra
Person
No. of strikes Growth Workers Growth Growth
Years days lost
& lockouts % participated % %
(in lakh)
1961 34 - 17200 - 0.36 -
1971 156 358.82 319700 1758.72 9.70 2594.44
1981 66 -57.69 56400 -82.36 47.36 388.24
1991 10 -84.85 6100 -89.18 2.37 -94.99
2001 12 20 8600 40.98 4.53 91.14
2011 07 -41.67 2600 -69.77 1.73 -61.81
Source - Economic Survey of Maharashtra 2012-13
Agro-Processing Co-operatives
Agro-processing co-operatives play key role in the development of rural
economy and ensuring reasonable returns to the farmers and development of rural
industry, thereby generation of employment. The State provides financial assistance to
societies for setting up agro processing units. Co-operative sugar factories, cotton
ginning & pressing, spinning mills, handloom & powerloom, dairy societies & dairy
unions and fisheries societies are the major constituents of agro-processing co-
operatives. There were 48,529 agro-processing cooperatives comprises together 85.30
lakh members as on 31st March, 2012.16
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The highest 48% members are as Sugar factories, 23% as Dairy societies, spinning
mills has 14% members, 4% as cotton ginning & pressing, Handloom 2%, Powerloom
1%, Dairy unions 2% and Fisheries has 6 per cent. That means the overall textile co-
operatives have about 21 per cent members.
The table 5.17 and 5.18 exposed the growth in spinning mills as well as powerloom
and handloom societies in Maharashtra state.
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Although numbers of spinning mills are rising even then gap between registered and
actual working mills increasing continuously. The growth rate of government share
capital is high into co-operative spinning mills as compare to their own share capital.
During 1981 to 2011, the spinning mills under losses increased by 11.8 percent it was
1.25% before economic reforms and 15.28% subsequently. Here researcher dictate
that the need of special policy for avoid losses in co-operative spinning mills.
Handloom was a traditional industry and part and parcel of rural people of India. It
suffers a setback especially from economic reforms in India. This industry has
sporadically growth in Maharashtra. During 1981-2011 the growth rate of co-
operative handloom industry was only 0.07 % that means below a half percent. It was
2.5 percent before economic reforms after that it comes down negative (-0.9)
percentage.
All above analysis reveal that, handloom industry not extended during the new
economic reforms period in Maharashtra. During 1981 to 2011, the share capital in
co-operative handloom societies increased by 42.5% similarly the government share
increased by 64.2 per cent. It means the government portion increased in share capital
of these societies but simultaneously extension has stopped.
During 1981 to 2011, powerloom societies increased by 12.13% it was 17.1
percent before economic reforms and 3.5% during economic reforms. It means there
was tremendous growth in powerloom society’s early economic reforms after that
normal reduction; though number of member increased (it was 1.5 per cent). At the
same time, growth in share capital increased by 100 per cent. The share increased by
98% of Maharashtra government. It was 43% early economic reforms but after that, it
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comes down till 23 per cent. All these means, the powerloom industry is going
towards the private sector.
Researcher can conclude that, the economic development will be increased in
rural areas through the extension of powerloom societies wherever availability of
cotton and yarn.
Table 5.19 shows; there are 161 co-operative cotton ginning & pressing societies in
2012. The State contribution in share capital of these societies was more than 22 per
cent. About 76.4 per cent societies were in loss in Maharashtra state.
The following table 5.20, reveals that the number of handlooms declining since 1971
to 2012-13. As per handloom census 1971, there were 185000 handlooms in the state
after that number of handlooms decreasing continuously. In the Handloom Inspection
Report of 2012-13, total 4146 handlooms remain static in Maharashtra.
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Table 5.20: No. of Handlooms in Maharashtra
Sr. no. Particular Handlooms Growth %
1 1971 census 185000 --
2 1976 census 77325 -58.20
3 1981 census 71459 -7.59
4 1986 census 67642 -5.34
5 1996 census 44724 -33.88
6 2006-07 handloom inspection 5718 -87.21
7 2011-12 handloom inspection 5703 -0.26
8 2012-13 handloom inspection 4146 -27.30
Source: Directorate of Textiles-Maharashtra State, Nagpur
As per handloom census 2009-10, nearly 3418 weavers are engaged in 1849
handlooms in Maharashtra. The majority (29.96%) of handlooms was located in
Solapur district, then 28.50%, 20.66%, and 11.41% in Nashik, Nagpur, and Bhandara
district respectively. These four districts have 90.53% (1674 looms) looms in the
state. On the other hand, most (28.12%) number of weavers engaged in Nagpur
district, then 21.47%, 18.99% and 11.94% in Solapur, Nashik, and Bhandara district
respectively. (See table 5.21) The State Government of Maharashtra has informed that
handloom weavers in Maharashtra are not debt ridden and poverty stricken.
As per the Handloom Census 2009-10, there are 1849 handlooms and 3418 handloom
weavers in following 11 districts of Maharashtra state.
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Table 5.21: District-wise Handlooms & Weavers in Maharashtra
District No. of Handlooms No. of weavers
Solapur 554 (29.96) 734 (21.47)
Nashik 527 (28.50) 649 (18.99)
Nagpur 382 (20.66) 961 (28.12)
Bhandara 211 (11.41) 408 (11.94)
Akola 107 (5.79) 192 (5.62)
Dhule 23 (1.24) 53 (1.55)
Jalgaon 22 (1.19) 91 (2.66)
Aurangabad 10 (0.54) 147 (4.30)
Amravati 6 (0.32) 93 (2.72)
Wardha 5 (0.27) 89 (2.60)
Kolhapur 2 (0.11) 1 (0.03)
Total 1,849 (100) 3,418 (100)
Source: Press Information Bureau, Govt. of India (http://pib.nic.in)
Note: figures in brackets are % to total
178
The number of powerloom units with registered looms as well as anticipated
employment during last nine years is given in table 5.22 above. Maharashtra state has
major share in powerloom sector in India. During 2011-12, the state has more than
2.87 lakh powerloom units which were 55.24% as compare to India’s (5.20 lakh)
total. There were more than 11 lakh (51.21%) looms registered in the state. The
anticipated employment under these units was more than 29 lakh, which were 51.21%
as compare to India.
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Barhanpur and then Dhule, Malegaon in Maharashtra. Bhiwandi were the road nearly
ended proof to be the most providential refugee. The migration mainly had done in
1857 at India’s fight against British. Today’s existence of Bhiwandi is only because of
1857.20
2. Malegaon: The first powerloom unit was started by Seth Abdul Razzaque from
Islampura with a unit of 10 powerlooms. 21 Today, there are about 1.5 lakh
powerlooms installed in 7500 units. Mostly powerloom units have 4 to 24
powerlooms. The majority of the powerlooms are conventional plain powerlooms.
Near about 500 powerlooms having semi-automatic technology and about 68
automatic shuttle-less powerlooms in Malegaon. There are about 75,000 workers
engaged in the industry. Mostly powerloom units are belong to private ownership and
about 70 per cent weavers are working as a Job Worker under the Master weavers.
The Malegaon powerlooms manufacturing about 60 per cent Grey Fabrics from Man-
made Fibres, 35 per cent Cotton Grey Fabrics and 5 per cent Dyed Fabrics such as
Lungi and Saree.
About Malegaon powerloom cluster: an early time Malegaon was centre of the
handloom industry. Since British era, Malegaon city has developed as a textile hub.
The era of power looms in Malegaon emerged after 1935. It has rapidly industrialised
and recorded remarkable growth since the 1940. Today Malegaon is one of the largest
powerloom centres. The Rangeen Saree made at Malegaon was very famous and was
exported to all over the country. Currently, powerloom industry engaged in
manufacturing of Grey Cloth, Synthetic and Cotton Fabrics, Dyed Cloth, Printed and
Dyed Sarees, Lungis etc. Malegaon is the third largest powerloom centre in India.
Today, around 1.5 lakh powerlooms operating amongst 37500 small scale powerloom
units throughout city employing about 1.1 lakh peoples directly. Around 3.75 lakh
peoples are engaged in entire textile sector with more than Rs.13 Crores daily
turnover.22 Majority of population is having the weaving to be main occupation. Daily
Production in Powerloom Industry is over 60 to 70 lakh meter. Malegaon has one Co-
operative Spinning Mill.
3. Ichalkaranji: This is one of the famous powerloom center in southern
Maharashtra. Ichalkaranji in Kolhapur District popularly known as Manchester of
Maharashtra is about 425 Km from Mumbai. Ichalkaranji was a princely state ruled
by the Ghorpade Dynasty for the last two centuries. Shrimant Narayanrao Babasaheb
Ghorpade was accountable for developing the Ichalkaranji village into an important
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Industrial town. Mr. Datar of Ichalkaranji was a supervisor of cotton mill in Bombay.
Somehow, he meets Balasaheb Ghorpade of Ichalkaranji. He gave land and interest
free loan and encouraged Mr. Vitthalrao Datar, a young entrepreneur of the town, to
install a power loom in 1904. Perhaps this was the first power loom which started in
the decentralized sector in our country.
4. Solapur: Solapur is a centre where mills, handlooms, powerlooms have developed
side by side. In the beginning, the handloom was providing the local needs. After First
World War, a mill was established on 1950-55. Act present powerlooms are busy in
manufacturing Jacquard chaddars and towels. These products have great demand in
the country and also exported to African countries throughout earning foreign
exchange.
5. Dhule and Nagpur also one of the centres as powerloom in Maharashtra. Dhule is
situated on Mumbai- Agra road to the east of Malegaon in Maharashtra. It is also
known for its coloured Sarees as like Malegaon. Nagpur is only one centre in
Vidarbha region having powerlooms.
Till the first two to three decades of the 20 th century, cotton textile industry was
mostly concentrated in the city of Mumbai due to following factors:
Easy and adequate availability of transport facilities to take cotton cloth to the
various consumption centres,
181
Easy availability of funds through a network of financial and banking institutions,
It was extremely helpful, that the availability of sea-port for exporting cotton textiles
in foreign countries. But during the post-world war-II, there was a tendency towards
the dispersal of cotton textile mills to other parts of states in India such as Gujarat,
Tamil Nadu, Madhya Pradesh and Andhra Pradesh.23
Following reasons were responsible for the spreading of cotton textile industry to
different parts of India since independence:
over growing population in Mumbai, rising rents and land prices, rising wage
rates, labour turbulence and government policy not allowing any new textile mills
to be started in Mumbai and in fact offering some concessions if an entrepreneur
wants to shift a cotton mill out of Mumbai,
availability of cheaper labour outside Mumbai and also the fact that textile
industry does not require highly skilled workers in a large number,
182
FDI in Maharashtra’s Textile industry:
Maharashtra state has witnessed FDI investment Rs. 1051 crores among 122 major
textile projects which is only 1.07 % of total FDI of Rs. 97,799 crore in India during
August 1991 to March 2012.
The state technical textile sector has also attracted significant investment interest. The
state is developing its first technical textile park at Ichalkaranji with an investment 20
million US Dollar. Now Government has allowed 100 per cent FDI in the textile
sector under the automatic route.
183
Performance of TUF Scheme
Table 5.24: State-wise Assistance under TUF Scheme during 1999 to
2010 (Rs. in crores)
Sanctioned Disbursed
States
No. of No. of
Amount Amount
Applications Applications
Tamil Nadu 6089 22666 (26.64) 6083 20449 (27.47)
Maharashtra 2070 18975 (22.30) 2059 16771 (22.47)
Punjab 2934 15508 (18.23) 2926 11321 (15.17)
Gujarat 13155 8314 (9.77) 13152 6902 (9.25)
Rajasthan 1109 5809 (6.83) 1109 5306 (7.11)
Others 2945 13819 (16.24) 2851 13877 (18.59)
Total 28302 85091 (100) 28180 74627 (100)
Source: Textile commissioner, Mumbai
Tamil Nadu (27.47%), Maharashtra (22.47%), Punjab (15.17%), Gujarat (9.25%), and
Rajasthan (7.11%) are the major state availed assistance under TUFS in terms of
amount disbursed. Remaining 18.59% amount disbursed among other states. During
April, 1999 to June, 2010 there was total Rs. 85091 crores sanctioned of which 87.70
per cent (Rs. 74627 crores) amount actually disbursed in the country. It clearly reveals
that Tamil Nadu is rank first and Maharashtra is second regards benefits under TUF
scheme. (table 5.24)
184
clusters in March, 2006 to facilitate deployment of available resources for effective
implementation and more sustainable results in medium to long term. The Cluster
Development Programme under Micro Small Enterprises, Maharashtra has clusters in
Yeola for Paithani Saree and Solapur for Textiles.25
Maharashtra state has been implementing some textile clusters under MSME. District
industrial centres of concern district are implementing agency.
The textile clusters are as follows:
1. Textile cluster Navapur, Nandurbar
2. Textile cluster, Wadawani-Beed
3. Cotton processing cluster, Selu- Parbhani
4. Textile cluster, Malegaon- Nashik
5. Powerloom cluster, Shirpur- Dhule
6. Garment cluster, Ichalkaranji- Kolhapur
7. Readymade garment cluster, Pune
8. Garment cluster, vita- Sangli
9. Readymade garment cluster, Nagpur
10. Paithan Saree cluster, Yeola- Nashik
11. Terry towel cluster, solapur
Baramati Hi-Tech Textile park offers state of the art infrastructure, also makes
available local, skilled and trained labour. This park provides a common effluent
treatment plant (ETP) to process industrial waste matter, also has a solar power
generation unit for generating solar electricity. MIDC has developing 7 exclusive
textile parks, Specialised Park in Maharashtra with facilities as R&D
laboratory/institute, trade centre, management and training centre, product and
process development laboratory, etc. the locations are Malegaon in Nashik, Chincholi
in Solapur, Kagal in kolhapur, Butibori in Nagpur, Shivajinagar in Sangli, Addl in
Latur and Nardhan in Dhule. Textile parks, aimed to provide world-class
infrastructural components for the textile sector and expand productive capacity, are
185
being set up in Maharashtra to maintain its leadership position in textile exports and
production. Some of the textile parks are the Nardhana Textile Park in Dhule,
Butibori (Nagpur) Textile Park and Ambernath Textile Park.
186
New Textile Policy: 2011-2017
The Government of Maharashtra announced new textile Policy of the State for
2011-2017 by the G. R. dated 2nd January, 2012. It is proposed to create 11 lakh new
jobs in the State within next five years in textile sector. This policy is to attract a total
investment of Rs. 40000 Crores in textile sector for the purpose of adding value to 45
lakh surplus cotton bales produced in the State.
Government gives its approval to the new scheme throughout giving 10% capital
subsidy on the eligible capital investment to the new Textile Units set up in
Vidarbha, Marathwada and North Maharashtra, under Textile Policy 2011-2017
in the State.
New co-operative spinning mills in Vidarbha, Marathwada and North
Maharashtra will be given equity support as per the existing financial pattern of
share capital like 5 % Own Share Capital, 45% Government Share capital and
50% as Loan from banks.
New Co-operative Spinning Mills in Talukas where government has not already
given equity support for setting up of Co-operative Spinning Mills shall be
eligible for the assistance as per 5: 45: 50 pattern.
Considering giving subsidies in order of merit to projects of cooperative societies
of shuttle less power looms, warping, sizing, yarn dyeing, dyeing, processing and
garmenting units etc. as per the present financial pattern (10: 40: 50) and
according to availability of funds.
Giving subsidies to the cooperative power looms units of SC, ST and Minority
Communities in following pattern as like own share capital, Government Share
Capital and Loan 5:45:50 instead of 10:40:50 will be considered in consultation
with concern Department.
187
Other policy decisions:
Proposal to give subsidy under special component scheme and tribal development
sub plan for the districts having low human index namely, Jalna, Gadchiroli,
Washim, Dhule, Yavatmal, Nanded, Nandurbar, Osmanabad, Chandrapur and
Buldhana etc.
Skilled workers are needed to use higher technology in the textile sector and
implementing the Skills Development Programme with the help of the Higher
and Technical Education Department.
Implementing ‘Gharkul’ scheme, health insurance scheme, and worker welfare
scheme for power loom workers in textile sector.26
188
Today, cotton textile industry has been facing a number of problems. The
policy of measures its growth and to rehabilitation of the industry will have to be
based on a clear understanding of the following problems which the industry is
tackled with. The cotton textile mills in the country face rising competition from
china, South Korea, Hong king, Taiwan and Japan in global textile markets.
The cotton textile industry in the state has been facing some of the short term and long
term problems.
Costly power.
Outdated technology,
Low productivity,
The cost of raw cotton or cotton (lint) bales is a single largest cost factor for the
manufacturing in spinning and composite mills. This industry is facing the problem of
getting supply of raw cotton or cotton (lint) bales at reasonable prices and in superior
quality. The high prices of raw cotton turn into rising cost of production. There is a
need to cultivation of superior variety i.e. long staple cotton for production of yarn in
standard quality counts. All these things will push to textile mills for compete with
global market.
189
(ii) Fluctuated government policies:
The government policy of controls and taxation, with often changes is a main factor
adversely affecting the cotton textile industry. Government has no properly long term
policy in respect of cotton textile industry in the country. Government controls on
prices, compulsion of hank yarn have adversely affecting to the cotton industry.
Sometimes, mills faced the marketing problems. Government banned on export of
cotton yarn as a result excess stock generates amongst mills in the country. China is
our major importers of cotton yarn. But it has established its own units and producing
mass production therefore demands for our cotton yarn decreasing. To eradicate all
these problems it is necessary that average standard production to compete with
global market.
the textile mills occurring shortage of labours, their union’s raise demands for
increase in wage rates, mills already suffering by financial crises due to continuous
losses occurred by flexibility and uncertainty in prices of raw materials and
production. The advantage of cheap labour is offset by low productivity of labour and
continuance of the use of old and outdated machinery in many of the old textile mills
which, while making huge profits in the past, did not build up adequate reserves of
funds. Thus, the cotton textile industry needs modernization. Without modernization
and skilled workers, the cotton textile industry cannot pick up its efficiency,
utilisation, productivity for compete with global of textile markets.
Indian cotton textile industry has been facing severe competition in global textile
markets. Now India competes with china and other countries. Without modernization,
the Indian textile industry can’t compete with global textile markets.
190
(vi) Sickness among cotton textile mills:
Rising cost of raw materials, trade unions attitude, and increasing competition from
foreign countries in the world markets and government policies and controls in
respect of production and distribution have all contributed to the sickness among
many cotton textile mills in the country.
Cost of electricity with inadequacy and irregular supply of electricity has been
adversely affecting the industry. Load shedding is a serious problem from the point of
view of cotton textile industry in the state.
191
of NTC. Another 5 mills in Maharashtra are managed through joint venture route. The
remaining mills are closed by NTC.29
192
In the past, the managing agency system which prevailed in the cotton textile
industry was extremely selfish, shortsighted and inefficient. For long, the managing
agents only thought of profits as they were not facing to a great extent international
competition. They failed to build adequate reserves out of the profits and failed to
bring about modernization of the Indian textile industry. The major problems faced by
the NTC are outdated machinery and surplus labour in many of the sick mills. 31
Summary:
Since ancient period, cotton is the trading commodity of Maharashtra.
Spindles, whorls and other textiles and spinning instruments have been found in great
quantity; it is evidence about existence of textile industry in ancient Maharashtra. The
maximum number of strikes and workers were participated during 1971 to 1981,
when textile mills of India located in Mumbai (Bombay). Most of the textile mills of
Bombay were closed down during 1970 to 1980. The textile industry in Bombay were
nearly finished upto 1985 due to labour strike, lock out. At that time the prices of land
property was very high in Bombay.
Till the first two-three decades of the 20th century, cotton textile industry was
mostly concentrated in Bombay city due to availability of sea-port for exporting
cotton textiles in foreign countries. But during the post-world war-II, there was a
tendency towards the dispersal of cotton textile mills to other states in India such as
Gujarat, Tamil Nadu, Madhya Pradesh and Andhra Pradesh. The cotton textile
industry spread in different part of India because of over growing population in
Mumbai, rising rents and land prices, rising wage rates, labour turbulence and also
government policy not allowing any new textile mills to be started in Mumbai and in
fact offering some concessions if an entrepreneur wants to shift a cotton mill out of
Mumbai, Abundant availability of raw cotton in different parts of the country where it
is widely grown, Development of means of transport and communication in different
parts of the country.
Maharashtra state has the largest area under cultivation of cotton further it is
the largest cotton producer in India. Vidarbha, Marathwada and North Maharashtra
are huge cotton growing areas in the state. Maharashtra has rank first in regards area
covered (33.87%) under cotton cultivation and 2 nd largest producer of cotton
193
(20.71%) in India. It contributes about 10.4 per cent to India’s textiles and apparels
output. There is more than 70% yarn made by cotton fibre in the state. However,
although the powerloom industry captured major share in weaving activity, cotton
consumption by mill sector indicates the growth trend in spinning activity. Around
70% looms are Non-Automatic. It is essential to point out that the modernization is
quite necessary in weaving mills in the state.
During 2008-09, the cotton consumption jumped down from mill sector. That
reduction can be attributed partly to the impact of the global recession. It should be
point out that the production of cotton spun yarn reduced in 2008-09 and 2011-12.
One thing observed that the closure of mills highly increased after 2011; consequently
lakhs of spindles as well as thousands of roters and looms are closed. An average
daily employment is decreasing in textile sector of Maharashtra. It was 3,69,100 in
1961 come down upto 2,04,500 in 2010. Although numbers of spinning mills are
registering even then gap between registered and actual working mills increasing
continuously. The growth rate of government share capital is high into co-operative
spinning mills as compare to their own share capital. Spinning mills have great
importance in co-operative sector of Maharashtra. Today, handloom has been come to
an end due to competition from powerloom sector. Most of the handloom weavers are
more than 50 years aged. They had not success in turn towards the modernization.
Maharashtra state has witnessed FDI investment is only 1.07 % of total FDI in
India during August 1991 to March 2012. Now Government allowed 100 per cent FDI
in the textile sector under the automatic route. The main products exported from the
State are textiles, readymade garments, cotton yarn. India is one of the major
exporters of textile fabrics and in recent years of ready-made garments also.
194
The Government of Maharashtra announced new textile Policy of the State for
2011-2017, in January, 2012. It is proposed to create 11 lakh new jobs in the State
within next five years in textile sector. This policy emphasis on growth of processing
units at different levels from cotton to textiles for assured long-term development on
priority basis in the cotton producing sector, development of the textile industry and
growth in employment. The state would provide financial assistance in a manner that
effective rate of interest payable by the eligible units would be 0% or 2 per cent. This
policy is to attract a total investment of Rs. 40000 Crores in textile sector for the
purpose of adding value to 45 lakh surplus cotton bales producing in the State.
Government gives its approval to the new scheme throughout giving 10% capital
subsidy on the eligible capital investment to the new Textile Units set up in Vidarbha,
Marathwada and North Maharashtra (Khandesh), under Textile Policy 2011-2017.
New co-operative spinning mills in Vidarbha, Marathwada and North Maharashtra
will be given equity support as per the existing financial pattern of share capital like 5
% Own Share Capital, 45% Government Share capital and 50% as Loan from banks.
195
References:
1. MEDC (1987). Industrial Maharashtra Facts, Figures and Opportunities. Bombay.
pp. 2, 5
2. Economic Survey of Maharashtra (2011-12). p. 1
3. ibid. p. 2
4. Dr. Deo, P. P. (2005). Trade and commerce in ancient Maharashtra. Ph.D thesis
submitted to Dr. B A M University, Aurangabad. p. 150
5. ibid. p. 177
6. ibid. p. 184
7. ibid. p. 44
8. ibid. p. 49
9. ibid. p. 51
10. ibid. p. 56
11. ibid. p. 61
12. Economic Survey of Maharashtra (2012-13). p. 94
13. Palsapure, P. Z. (1974). Regional study of industrial development of Vidarbha.
Bombay: Popular prakashan. P. 196
14. ibid. p. 206
15. ibid. p. 191
16. Eco. Survey (2011-12). Op. cit. p. 124
17. Ansari Naseem Bano (2007). Impact of Politics on Powerloom Industry in
Malegaon (1947 to 2000). Ph.D thesis submitted to Dr. B A M University,
Aurangabad. P. 87
18. Ministry of Textiles (5 Sept. 2012). Minister of State for Textiles, Smt.
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22. City Sanitation Plan‐Zero Draft Report (2012). Malegaon Municipal Corporation,
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197