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Chapter-V Cotton Textile Industries of Maharashtra, Problems and Prospects

1) The document discusses the history and development of cotton textile industries in the state of Maharashtra in India. It details how cotton was a major traded commodity and textiles were a leading export in ancient Maharashtra. 2) Several key cities are mentioned as historic textile production and trading centers, including Tagar, Paithan, Nevasa, Kolhapur, and Paunar. Govardhan near Nasik had a weaver's guild and textile units. 3) Currently, Maharashtra has over 30% of India's cotton cultivation area but lower average yields. It is the largest cotton growing state but second largest producer nationally. The document presents tables on state-wise cotton

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0% found this document useful (0 votes)
2K views45 pages

Chapter-V Cotton Textile Industries of Maharashtra, Problems and Prospects

1) The document discusses the history and development of cotton textile industries in the state of Maharashtra in India. It details how cotton was a major traded commodity and textiles were a leading export in ancient Maharashtra. 2) Several key cities are mentioned as historic textile production and trading centers, including Tagar, Paithan, Nevasa, Kolhapur, and Paunar. Govardhan near Nasik had a weaver's guild and textile units. 3) Currently, Maharashtra has over 30% of India's cotton cultivation area but lower average yields. It is the largest cotton growing state but second largest producer nationally. The document presents tables on state-wise cotton

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rohini soni
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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  • Profile of Maharashtra State: Provides an introduction to the socio-economic profile of Maharashtra, detailing geography, population statistics, and infrastructure development.
  • Cotton Textile Industries Discussion: Explores the development, challenges, and performance of cotton textile industries within Maharashtra, including historical and current analysis.
  • Problems and Prospects: Analyzes the current issues facing the textile industry and explores the potential future prospects for growth and improvement.

CHAPTER-V

COTTON TEXTILE INDUSTRIES OF


MAHARASHTRA, PROBLEMS AND
PROSPECTS

153
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

Profile of Maharashtra State


Maharashtra is the second largest state in India both in terms of geographical
area (3.08 lakh sq. km.) and population of around 11 crore as per Census 2011 which
is 9.3 per cent as compare to India. The State is very much urbanised with 45 per cent
population residing in urban areas. At present industrial and service sectors both
together contributes nearly 87 per cent of the State domestic product. The agriculture
and other allied activity sector contribute remain 13 per cent to the State income. The
State has 226.1 lakh hectares of land under cultivation, out of which 52.1 lakh
hectares (23.04%) are under forest area.
The State has 36 districts divided into six revenue divisions namely Konkan,
Pune, Nashik, Aurangabad, Amravati and Nagpur for administrative purpose. The
State has constitutional bodies for planning at district level. For local self-governance
in rural areas of the state, there are 33 Zilla Parishads, 351 Panchayat Samitis and
27,906 Gram Panchayats. The urban area are governing through 23 Municipal
Corporations, 221 Municipal Councils, 5 Nagar Panchayats and 7 Cantonment
Boards.2

Maharashtra is the most industrialised state in the country; it also pioneer in


small scale industries. The state continues to catch the attention of industrial
investments from both, domestic as well as foreign investment. The state has well

154
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 Trade and Textile Industries in Ancient Maharashtra

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

Textile products were foremost things, which occupied a leading position in


the export trade of ancient Maharashtra. This is substantial by the archives evidences
provided by the Greek travellers. A traveller who visited ancient Maharashtra in 2nd
century B.C. and wrote, “periplus of the Erythrean sea” says that, ‘Tagar’ (i.e. Ter in
osmanabad) was one of the major manufacturing centre for muslin as well as common
variety of cloths.5 Archaeological findings at excavation place strengthen the fact that
ancient Maharashtra had witnessed a tremendous growth of textile industry. Spindles,
whorls and other textiles and spinning instruments have been found in great quantity
at many sites and they provide evidence about the existence of textile industry in
ancient Maharashtra.

Trade centers in Ancient Maharashtra


Archeological finds at Tagar, Paithan, Nevasa, Kolhapur and Paunar have
confirmed the fact that manufacturing units of some of the commodities were located
at these places of ancient Maharashtra. This is further corroborated by the references
about name of traders association in the inscriptions. There was weaver’s association
at govardhan nearby Nasik in Maharashtra.6 This association had its own weaving
units. Number of such industrial units must have survived in ancient Maharashtra. By
the archives records, Tagar and Govardhan was the renounced textile manufacturing

155
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
156
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.

Today, Nevasa is located in Ahmednagar district and Govardhan in Nashik


district of Maharashtra state. The old textile centres like Kaundiyapur and paunar was
located in Vidarbha region and Tagar as well as paithan is in Marathwada region.
Now a day Bhiwandi, Ichalkaranji and Malegaon is enormous powerloom centre in
Maharashtra state. Solapur, Nagpur, Nashik and Bhandara districts have major share
of handlooms in the state. Similarly Kolhapur and Solapur district occupied major
numbers in cotton mills. On the other hand, Vidarbha, Marathwada and North
Maharashtra are huge cotton producing areas in the state.

Cotton Profile of Maharashtra


Maharashtra state has more than 30 per cent area under cotton cultivation as compare
to India. An average yield of cotton in Maharashtra has lower than India due to low
productivity. The details are given in tables 5.1, and 5.2 below:

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)

157
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

Gujarat 29.62 (24.32) 122.00 (33.24) 700 36.71

Andhra Pradesh 18.7 (15.43) 60.00 (16.35) 543 6.05

Madhya Pradesh 7.06 (5.79) 18.00 (4.90) 433 -15.42

Haryana 6.41 (5.26) 26.00 (7.08) 690 34.76

Panjab 5.60 (4.60) 20.00 (5.45) 607 18.55

Karnataka 5.54 (4.55) 15.00 (4.08) 460 -10.15

Rajasthan 4.70 (3.86) 18.00 (4.90) 651 27.14

Tamil Nadu 1.33 (1.09) 6.50 (1.77) 831 62.30

Orissa 1.02 (0.84) 3.50 (0.95) 583 13.86

Others 0.46 (0.38) 2.00 (0.54) 739 44.33

Total 121.78 (100) 367.00 (100) 512 (100) -


Source: Cotton Advisory Board (CAB), Data retrieved from http://cotcorp.gov.in

Graph 5.1: State-wise Area and Production of cotton in India

Source: table 5.1

158
Diagram 5.1: State-wise cotton productivity/yield (in kg. per hectare)

Source: table 5.1

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 -

2003-04 27.66 -1.21 31.00 19.23 191 20.88

2004-05 28.40 2.67 52.00 67.74 311 62.82

2005-06 28.75 1.23 35.00 -32.69 207 -33.44

2006-07 31.07 8.06 50.00 42.85 274 32.36

2007-08 31.95 2.83 62.00 24 330 20.43

2008-09 31.42 -1.65 62.00 0 335 1.51

2009-10 35.03 11.48 65.75 6.04 319 -4.77

2010-11 39.32 12.24 87.75 33.46 379 18.80

2011-12 41.25 4.90 76.00 -13.39 313 -17.41

Average 32.28 4.50 54.75 16.36 281.7 11.24


Source: Cotton Advisory Board (CAB), data retrieved from http://cotcorp.gov.in

159
Graph 5.2: Area, Production & Productivity/Yield of cotton in Maharashtra

Source: table 5.2


During the study period, Maharashtra covered average area 32.28 lakh hectare
under cotton cultivation. During the same period it produced average 54.7 lakh bales
of cotton production with average yield of 281.7 kg per hectare. The yield of cotton
depends on availability of black soil, rainfall, fertilizers, favorable weather conditions,
quality of seeds and farmers awareness about cotton cultivation etc. The
productivity/yield cotton raised after 2003 in the country because of farmers started
cultivation of Bt cotton seeds. During 2000-2001 to 2010-11; productivity/ yield of
cotton lint increase from 100 kg to 379 kg per hectare in the state. (See Table 5.2)

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).

160
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

Source: table 5.3

Graph 5.4: Top 10 districts in Productivity/Yield (in bales) of cotton in 2010-11

Source: table 5.3

Table 5.4: Triennial Average Productivity/Yield of Cotton (Lint)


(During 2007-08 to 2009-10)
Particular Average cotton (lint)

Maharashtra 304 (-28.30)

India’s total 424 (100)


Source: Economic Survey of Maharashtra 2012-13
Note: Yield per hectare in kg.

162
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

Cotton Textile Industries in Vidarbha: Historical review


Cotton is one of the main cash crops in Vidarbha region. It is growing in
Yeotmal, Amravati, Buldhana, Wardha, Nagpur, Washim, Akola, chandrapur and
partly in Gadchiroli districts due to black soil, adequate rainfall and favourable
climate.
In Vidarbha, the cotton textile industry dates back to the year 1877, when the
Empress Mill was started by Jamshedji Tata at Nagpur. By 1960, there were 9
spinning and weaving mills with 316628 spindles and 5854 looms in Vidarbha13. The
Empress and Model mills of Nagpur was largest composite units and account for
about 52.9 per cent of spindles and 52.2 per cent looms of the industry in this region.
All this mills spin common counts of yarn, but small quantities of finer yarn and cloth
was manufactured by the Empress and Model mills, Nagpur. The main varieties of
cloths were bed-sheets, dhoties, drills, shirtings, tent and long-cloth.
There were 21 cotton ginning and pressing societies in 1962-63. Three co-
operative spinning mills have been organised at Amravati, Nagpur and Akola14. The
Amravati and Akola spinning mills were on the pattern of farmer’s organization and
the spinning mill of Nagpur was on the pattern of consumer’s organization. The other
industrial co-operatives include 15 dyeing and printing societies. During 1964-65,
163
total 253 handloom-weaver societies were in Vidarbha. These societies were mainly
concentrated in Nagpur district and others are in the Bandara, Chandrapur and
Amravati. Very few weaver societies undertake weaving at the societies but most of
them supply yarn to members for weaving cloth. Vidarbha weaver’s central co-
operative society was at Nagpur which caters to the needs of primary societies in
respect of yarn and marketing of the finished products. There were 35 sales depots
and one dye-house run by the weaver’s co-operatives.
Textile accessories like ‘Shuttles’ and ‘Bobbins’ were required by textile
mills, powerlooms and handlooms. Before 1974, there were 9 textile mills and 89
thousand handlooms in Vidarbha. As the demand of shuttles and bobbins, was met to
some extent from Amritsar, Solapur and Ahmedabad accordingly15. In 1974, there
were 201 ginning and pressing units in this region. These units were in Akola (38),
Amravati (34), Buldhana (53), Nagpur (13), Yeotmal (41), Wardha (18) and
Chandrapur (4). They were supply the cotton bales to the cotton textile mills of this
region as well as in other states. The agents of mill units visits these centre for their
yearly purchases of cotton bales. These units starts their work in October and continue
upto May. An annual output was about 8 to 9 lakh bales. By 1982, the Empress Mill
was close down because of excess demands from workers.

Table 5.5: Performance of Cotton Textile Industries in Maharashtra


(Since 1960-61 to 2011-12)
Items Unit 1960-61 2000-01 2010-11 2011-12
Cotton cloth Crore sq.m. 167 73 16.10 17.25
Cotton (lint) ** ‘000 bales 1673 1803 7473 6820
(31-12- (31-12- (31-12-
Industries: Number - 2000) 2010) 2011)
Spinning mills Number 02 183 166 166 P
Industrial disputes: §
Number 274 59 33 27
No. of strikes & lockouts
Workers participated Hundred 834 237 135 100
Person days lost Lakh 5.76 52.31 22.43 23.45
Source: Maharashtra’s Economy in Figures, 2012, Directorate of Economics &
Statistics, Govt. of Maharashtra, Mumbai
Note: **= Bales of 170 kg each. P= Provisional. §= Figure relate to calendar year.

164
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

Workers employed in cotton Thousand 157 934 17.8


textile mills
Monthly production of spun Lakh Kg. 308 3312 9.3
yarn
Monthly production meters of Mn. sq. 20 144 13.8
cloth
Source: Handbook of Basic Statistics of Maharashtra State 2009, Directorate of
Economics & Statistics, Govt. of Maharashtra, Mumbai

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)

Cotton Textile Industry in Maharashtra: current scenario


Maharashtra contributes about 10.4 per cent to India’s textiles and apparels
output. Maharashtra state has the largest area under cultivation of cotton further it is
the largest cotton producer in India. It accounts for about 65 million kilograms of
cotton production. The textile industry group is the largest employer in Maharashtra
and contributes around 27 per cent to India's total exports. India is the 3rd largest
producer of cotton in the world. Maharashtra ranks second in India in regards
production of cotton. Around 3 million farmers are engaged cultivation in the state
mostly in the backward region of Marathwada and Vidarbha. Maharashtra state is a
leading producer of cotton and accounts for 20% of the country’s total production.
The area under cotton cultivation is an around 29 to 31 lakh hectare which is 30% of
the country’s total area under cotton cultivation.
The following table discloses the statistics about current scenario of cotton
textile industry in Maharashtra. The details about mills those belong to different
categories, their installed capacity as regards spindles, roters, looms, workers engaged
therein, production and consumption of cotton fibre as well as production of yarn and
fabric (cloth) are also given in table 5.7 below:

165
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.

166
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.

As per as powerloom sector concern, there were 2.87 lakh (55.19%)


powerlooms in Maharashtra during the period of 2011-12, as against 5.20 lakh in
India. During 2011-12, there were total 23.77 lakhs of handlooms in the country, out
of which 5703 (0.24%) handlooms in Maharashtra as per Handloom Inspection
Report of Director of Textile, Nagpur.

167
Table 5.8: Category-Wise & Management-Wise Cotton/Man-Made Fibre Textile Mills (Non-SSI)
No. of Textile Mills in Maharashtra

Spinning Composite Total


Year Public Public Public
Co-Op. Pvt. Total Co-Op. Pvt. Total Co-Op. Pvt. Total
Central State Central State Central State

2008 4 1 70 51 126 11 6 0 26 43 15 7 70 77 169

2009 4 1 71 52 128 11 6 0 27 44 15 7 71 79 172

2010 5 1 74 53 133 10 6 0 27 43 15 7 74 80 176

2011 5 1 83 64 153 9 5 0 23 37 14 6 83 87 190

2012 6 1 85 61 153 8 5 0 24 37 14 6 85 85 190

2013 7 1 87 59 154 7 5 0 24 36 14 6 87 83 190

Source: textile commissioner, Mumbai. Data compiled from www.txcindia.gov.in

168
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.

Table 5.9: Cotton Consumption by Cotton/Man-Made Fibre Textile Mills


Cotton Consumption
Years Growth in %
(In '000 Kg.)
2003-04 271506 -
2004-05 321338 18.35
2005-06 303287 -5.61
2006-07 330967 9.12
2007-08 338220 2.19
2008-09 303179 -10.36
2009-10 312585 3.10
2010-11 350798 12.22
2011-12 370169 5.52
2012-13 397042 7.25
Average 329909 4.64
Source: Textile commissioner, Mumbai (txcindia.gov.in)

During 2003-04 to 2012-13, an average cotton consumption by mills sector was


329909 thousand kg. and average growth was 4.64 per cent in Maharashtra. During
2008-09, the cotton consumption jumped down in mill sector. That reduction can be
attributed partly to the impact of the global recession. However, although the
powerloom industry captured major share in weaving activity, cotton consumption by
mill sector indicates the growth trend as a spinning activity. (Table 5.9)

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:

169
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

2005-06 233459 6.91 57660 1.37 35250 -0.66 326369 5.03


2006-07 266346 14.09 62058 7.63 36584 3.78 364988 11.83

2007-08 267785 0.54 64547 4.01 36961 1.03 369293 1.18


2008-09 233617 -12.76 70833 9.74 37392 1.17 341843 -7.43

2009-10 251606 7.70 75125 6.06 39847 6.57 366578 7.24


2010-11 274922 9.27 80592 7.28 39362 -1.22 394876 7.72

2011-12 257777 -6.24 70487 -12.54 39372 0.03 367636 -6.89


2012-13 298942 15.97 65571 -6.97 38328 -2.65 402841 9.58
Average 251193 4.43 66292 1.41 36866 2.88 354352 3.60
Source: Textile commissioner, Mumbai

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.

170
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

2009 63 3328 331 952 40 4651 84 6106

2010 63 3328 331 952 40 4651 84 6094

2011 61 3312 331 982 40 4665 84 6486

2012 60 3286 295 1660 40 4681 84 6631

2013 61 3286 295 1110 40 4731 84 7189

Source: Textile commissioner, Mumbai

Table 5.12: Closure of Cotton/ Man-Made Fibre Textile Mills in


Maharashtra (Non-SSI)
Closed Mills Affected
Years
Spinning Composite Total Spindles Rotors Looms Workers

2008 22 09 31 717819 5064 5294 32451


2009 22 09 31 717819 5064 5294 32451
2010 22 10 32 736851 5064 5450 33279
2011 23 10 33 816731 6096 5450 34173
2012 45 15 60 1116002 17152 6375 36460
2013 47 17 64 1219238 11812 6363 35846
Source: Textile commissioner, Mumbai

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.

171
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

India’s total 91 145158 114690 30841


Source: Textile commissioner, Mumbai

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.

Table 5.14: Average Daily Employment in Textile Industries in


Maharashtra
Years Employment Growth %
1961 369100 -
1971 351600 -4.74

1981 355400 1.08

1991 252700 -28.89

2001 216700 -14.25

2010 204500 -5.63


Source: Economic Survey of Maharashtra 2012-13
Note: Textile industries including wearing apparels.

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

Table 5.16: Members in major agro-processing co-operatives


Sugar factories 48%
Dairy societies 23%
Spinning mills 14%
Cotton ginning & pressing 4%
Handloom 2%
Powerloom 1%
Dairy unions 2%
Fisheries 6%
Source: Economic Survey of Maharashtra 2012-13

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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.

Cotton Industry in Co-operative Maharashtra


Maharashtra is a foremost cotton producing state next to sugar cane
particularly in Vidarbha, Marathwada and North part (Khandesh) of Maharashtra.
Spinning mills have great importance in co-operative sector of Maharashtra. As per
economic survey of Maharashtra (2012-13), there were 166 co-operative spinning
mills having 13.16 lakh spindles in 2012. Only 59 (35.54%) spinning mills were in
production similarly 56 (33.7%) societies were in loss in the state. The government of
Maharashtra contribution about 84.2% shares capital of these mills simultaneously.
The registered co-operative handloom societies were 670, out of which, 310 (46.3%)
societies in loss as on 31 st March, 2012. The share capital was Rs. 76.47 crore, out of
which 4.81 crore (6.3%) state own in co-operative handloom societies. There were
1,471 powerloom societies comprise 256000 looms in 2012. Nearly 38.95% (573) co-
operative power loom societies were in loss. The State share capital in co-operative
powerloom societies were 55.12% (58.54 crore).

The table 5.17 and 5.18 exposed the growth in spinning mills as well as powerloom
and handloom societies in Maharashtra state.

Table 5.17: Growth Trend of Co-op. Spinning Mills in Maharashtra


(1981 to 2011)
Growth rate
Particulars 1981 1991 2001 2011 1981 - 1991 – 1981 -
1991 2011 2011
Spinning mills 70 125 229 168 7.86 1.72 4.67

S. Mills under 20 31 46 59 5.50 4.52 6.50


production
S. Mills under loss 16 18 70 73 1.25 15.28 11.88

No. of spindles 19297 15524 13656 13740 -1.96 -0.57 -0.96


Source: Govind Pansare, “Maharashtrachi Arthik Pahani-Paryai Drushtikon-2012”

174
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.

Table 5.18: Growth Trend in Co-op. Powerloom & Handloom


Societies in Maharashtra (1981 to 2011)
Growth rate
Items 1981 1991 2001 2011 1981 - 1991 – 1981-
1991 2011 2011
Powerloom 297 806 1056 1378 17.14 3.55 12.13
Societies
Handloom 670 842 719 685 2.57 -0.93 0.07
Societies
Source: Govind Pansare, “Maharashtrachi Arthik Pahani-Paryai Drushtikon-2012”

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

175
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: Co-operative Cotton Ginning-Pressing Societies in


Maharashtra (crore)
31st march
Particulars % change
2011 2012
Societies (No.) 164 161 -1.8
Of which, in production 133 143 7.5
Societies in loss (No.) 123 123 0.0
Share capital 08 09 12.5
Of which, State Govt. 02 02 0.0
Members (No. in ’00) 2057 2151 4.6
Raw cotton ginned (MT) 154 157 1.9
Source: Economic Survey of Maharashtra 2012-13

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.

Handloom Industry in Maharashtra state


Handloom industry is a traditional and labour oriented cottage industry in
Maharashtra. It has preserved the inheritance of Indian culture and art. Today it 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.

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

Maharashtra State Handloom Corporation Ltd. (MSHC):


Maharashtra State Handloom Corporation (MSHC) implements its production
programme with the help of skilled weavers on contractual basis. MSHC has now
carried out its production programme in its production centres located in Nagpur,
Bhandara and Solapur Districts. MSHC has two distribution centers situated at
Nagpur and Kalmeshwar. The goods produced in various production centers distribute
to the sales depots namely Nagpur, Mumbai, Aurangabad, Jalgaon, and Nanded etc.

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

Table 5.22: Registered Powerlooms and Employment in Maharashtra


Powerloom Growth Looms Growth Employment Growth
Years
units % Registered % (anticipated) %
2003-04 211398 - 837165 - --- -
2004-05 214308 1.37 860295 2.76 --- -
2005-06 217557 1.51 880864 2.39 2202155 -
2006-07 220246 1.23 914552 3.82 2286376 3.82

2007-08 246859 12.08 1014272 10.90 2535679 10.90

2008-09 269912 9.33 1106474 9.09 2766185 9.09

2009-10 277927 2.96 1138894 2.93 2847235 2.93

2010-11 286537 3.09 1173254 3.01 2933135 3.01

2011-12 287283 0.26 1177094 0.32 2942735 0.32

2012-13 289901 0.91 1207961 2.62 3019903 2.62


Average 252192 3.64 1031083 4.20 2691675 4.67
Source: Textile commissioner, Mumbai
Note: (---) indicates data were not available.

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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.

Powerloom centres in Maharashtra


The Maharashtra state is the pioneer in the powerloom industry in India. The
powerloom industry is spread all over India. The major states are Maharashtra,
Gujarat, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, Punjab,
Rajasthan, Karnataka, and Hariyana. As per textile commissioner, Mumbai, there are
5.20 lakhs powerloom units having over 22 lakh looms in India of which Maharashtra
state has about 2.87 lakhs units have nearly 12 lakh looms which is 55.19 per cent as
compare to India. In Maharashtra, about 95 per cent of the total powerlooms are
located in five major clusters namely Bhiwandi, Malegaon, Ichalkaranji, Solapur and
Nagpur.19
There are over 22 lakh powerlooms in India out of that Bhiwandi and Surat is having
7 lakh each, Malegaon 1.50 lakh and Ichalkaranji 1.45 lakh.
1. Bhiwandi: an acceleration of Power looms in Bhiwandi was only because of the
closed Textile Mills in Bombay. It was very difficult to factory inspector to keep watch
on 1.75 lakh units in long spread Bhiwandi area. A many of the worker were illiterate.
Labor welfare practices are not present even today. Poor wages, uncertainty of work and
demand is here. This is so called success story though it is painful but still supporting the
growth of powerloom industry in Bhiwandi. The first powerloom was started in
Bhiwandi by Haji Ali Samad Ali Lal Mahamad in 1935.
Brief History of Bhiwandi:
After 1850 the North India was disturb. By 1850-52, when ‘Plasi’s war’
happened it was a cut-off point for Bhiwandi. At that time, artisans/ weavers started
its migration from north India to south India through Agra- Bombay route. Agra to
Bombay was only one oldest route for coming to south India. Maheshwar (Mahu)
which located near indoor on the banks of Narmada River and fit of power of ‘Holkar
Dynastic’ was the first stop of those artisans/weavers. Further that road came to

179
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
180
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.

Locational Pattern of Cotton Textile Industries:


Raw cotton not being a weight losing raw material, it is not absolutely
necessary that cotton textile mills be established near the sources of raw material,
namely raw cotton. Also, it so happens that the cost of transporting cotton and cloth
are practically the same. But the cotton textile industry has tended to move to regions
where there is easy availability of transport facilities to move cloth to different
consumption centres.

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:

 healthy climate for cotton spinning in Mumbai,

 Easy and adequate availability of transport facilities to take cotton cloth to the
various consumption centres,

 Abundant availability of skilled labour and technicians,

 Easy availability of raw cotton grown in Mumbai hinterlands like Gujarat,


Kandesh and southern Maharashtra.

181
 Easy availability of funds through a network of financial and banking institutions,

 Easy advertising and marketing facilities,

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,

 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.

 Substantial development and availability of electric power in different regions of


the country,

 availability of cheaper labour outside Mumbai and also the fact that textile
industry does not require highly skilled workers in a large number,

 Offers by other states on some concessions, if industries established there.

Maharashtra State Co-operative Textile Federation Ltd.


(TEXCOFED)

Maharashtra State Co-operative Textile Federation (TEXCOFED) Ltd. Mumbai is an


Apex organisation of all the co-operative textile units in Maharashtra providing
techno-commercial services to its members. Maharashtra State Co-operative Textile
Federation (TEXCOFED) Ltd. committed for development of Co-operative textile
units in Maharashtra State. Namely, Spinning Mills, Weaving, Knitting, Processing
and Redy-Made Garment Units.

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.

Table 5.23: FDI projects approved in Textile Industry


(August, 1991 to March, 2012)
Particular Projects (No.) Investment (crore)
Maharashtra 122 (2.87) 1051 (1.07)
India’s total 4246 (100) 97799 (100)
Source: Economic Survey of Maharashtra 2012-13

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.

Exports from Maharashtra


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.

Initiatives by Government of Maharashtra


New Textile Policy 2011-17 made by Government of Maharashtra; emphases
on growth of processing units at different levels from cotton to manufacturing textiles
for assured long-term development on priority basis in the cotton producing sector,
development of the textile industry and growth of employment in the state.
Maharashtra would provide 10 per cent capital subsidy for newly establishing textile
units in cotton growing area viz., Vidarbha, Marathwada and Khandesh. The state
would provide financial assistance in a manner that effective rate of interest payable
by the eligible units would be 0 per cent or 2 per cent. The state government is taking
steps to strengthen the textile industry by establishing textile parks in Nagpur, Dhule
and Ambernath. Vidarbha, which has rich cotton belt, would be developed as a textile
manufacturing zone.24

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)

Industrial Infrastructure Upgradation Scheme 2003


Government of India has implementing Industrial Infrastructure Upgradation
Scheme since 2003 for providing high class infrastructures to the existing clusters in
order to support MSMEs. The State identified and recommended five proposals to
central government and received approval for the same. These projects include Textile
Cluster at Ichalkaranji. The State has supported these initiatives for cluster
development and announced 10 per cent State grants to the approved projects.

Industrial Cluster Development Programme under MSME


As a key strategy for enhancing the productivity and competitiveness of
MSMEs, Government of India announced scheme for development of potential

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

Newly sanctioned Textile parks in Maharashtra under SITP


Total 15 textile parks sanctioned in Maharashtra state out of which 3 parks sanctioned
for Ichalkaranji, 2 at Kolhapur, subsequently Islampur, Solapur, Baramati, Bhiwand,
Pune, Dhule, Amravati, Basmatnagar-Hingoli, Beed, and Latur got one each
respectively.

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.

Details of Approved Integrated Textile Parks in Maharashtra


Estimated GOI's
Sr. Date of
Project Name Location Project Cost Contrib
No Approval
(Rs crore) ution
Metro Hi-Tech
1 Cooperative Park Ichalkaranji 25.11.2005 106.50 40.00
Limited
Pride India cooperative
2 Ichalkaranji 03.02.2006 58.19 23.28
Textile park Limited
Baramati Hi Tech Textile
3 Baramati 01.07.2006 108.52 40.00
Park Limited
Purna Global Textiles
4 Hingoli, 16.05.2008 107.29 40.00
Park Ltd
Shri Dhairyashil Mane
5
Textile Park Co-op Ichalkaranji 01.07.2006 72.25 28.90
Society Limited
Latur Integrated Textile
6 Latur, 16.05.2008 102.61 40.00
Park
Deesan Infrastructure
7 Dhule, 16.05.2008 103.12 40.00
Pvt.Ltd
Asmeeta Infratech Pvt
8 Bhiwandi, 16.05.2008 200.80 40.00
Ltd
Islampur Integrated
9 Islampur 16.05.2008 102.39 40.00
Textile Park Pvt.Ltd
Asiatic Cooperative
10 Solapur -- 100.85 40.00
Powerloom Textile Park,
Kallappana Awade
11 Ichalkaranji -- 107.10 40.00
Textiles Park,
Sundararo Solanke
12 Cooperative Textiles Solapur -- 103.25 40.00
Park,
Kagal Industrial Textiles
13 Kagal -- 96.83 38.73
Technology Park
Birla Integrated Textile
14 Amravati -- 118.81 40.00
Park,
15 Khed Textile Park, Pune -- 74.67 29.87
Source: SITP Section, Website updated on 19-03-2013

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.

 Scheme of Interest subsidy on long-term loans linked to centrally sponsored TUF


Scheme has started for New Textile project as well as modernization, expansion
or rehabilitation project of existing textile units.
 For modernization of power loom units of SC, ST and Minorities, sanctioned by
Banks, a scheme to give 10% capital subsidy of the capital investment (i.e. 10%
of the permissible investment for the purpose of interest subsidy for projects
which are approved in TUF Scheme) on machinery.

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

Problems and Prospects in Cotton Textile Industries of


Maharashtra:
With a view to make available coarse and medium varieties of cloth to poorer
sections of the community, the central government in March 1947 raised the quantum
of controlled cloth to be compulsorily produced by mills from 400 million metres to
800 million metres. After much damage was done to the textile industry, the
government went to the other extreme and in 1978 exempted the cotton textile mills in
the organised sector from the production of controlled cloth. In July 1981, the quota
of controlled cloth was fixed at 650 million sq. metres of which 340 million sq.
metres were to be produced in the handloom sector and the rest by the sick textile
mills taken over by the national textile corporation. Government proposes to
eventually transfer by the end of 1990 the entire quota of controlled cloth or Janata
cloth to the handloom sector, responsibility as those sick mills have not been doing
well from the economic point of view.27

By 1972 government made compulsion to cotton mills that 50 per cent of


production of cotton yarn must be made for the powerlooms and handlooms in
decentralised sector. The import duty on cloth imported from abroad was very high
pushing up prices of cotton cloth was very high further pushing up their prices.
Increase in excise duties on polyester fabrics adverse effect on profitability of the
cotton industry. There was a time when the controlled prices fixed by the government
were in fact below even the cost of production of cloth of many varieties.28

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.

Short term problems:

 High & fluctuated prices of raw materials,

 Labour shortage, and

 Costly power.

Long term problems:

 Slow pace of modernization,

 Outdated technology,

 Low productivity,

 Rising cost of production,

 Low level of profitability, and

 Increasing sickness among the cotton textile mills.

(i) Price flexibility of raw materials:

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.

(iii) Shortage of skilled workers and cost of modern technology:

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.

(iv) Global competition:

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.

(v) Changes in consumption pattern of cloth:

The pattern of consumption of cloth is changing, man-made fibre cloth being


increasingly substituting cotton cloth. Mills in the organised sector will have to
continually adjust to this changing pattern of consumption of cloth by increasing the
use of long staple cotton and man-made fibres. This may not be possible for many
mills which have invested huge amounts in heavy machineries.

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.

(vii) Costly electric power:

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.

Prospects in Cotton Textile Industries of Maharashtra:


There is an ample scope to growth of cotton textile industries as like ginning
units, spinning mills, composite mills, garments units and further processing in the
state. An around 70 per cent raw cotton going to other states such as Gujarat, Tamil
Nadu, Andhra Pradesh, Karnataka and Madhya Pradesh etc. Maharashtra is a second
largest producer of cotton in the country. There is no adequate number of industries
with huge installed capacity to consume all these cotton which produced in our state.

One additional point of regional disparities should be considered in respect of


cotton textile industries in Maharashtra. Mostly cotton textile mills both spinning and
composite are located in part of western Maharashtra consist of solapur, Kolhapur and
Sangli districts. However, Vidarbha, Marathwada and North Maharashtra are the
major cotton producing areas. Moreover, exclusive weaving mills either it is silk,
rayon or synthetic mills still located in Mumbai and thane district of Kokan. Majority
of powerlooms are situated in Bhiwandi, Malegaon and Ichalkaranji which is part of
western Maharashtra.

If cotton processing industries establish in cotton growing areas like


Vidharbha, Marathwada and part of North Maharashtra, the transportation cost
automatically reduce and employment opportunities shall come into exist.

As per Press Information Bureau of ministry of textile government of India,


Now NTC is implementing revival scheme approved by BIFR, under which 5 mills in
our state have been revived by NTC which is financed through sale of surplus assets

191
of NTC. Another 5 mills in Maharashtra are managed through joint venture route. The
remaining mills are closed by NTC.29

Great Potential District for Cotton Textile Industry


As per the statistic of Central Institute for Cotton Research (CICR) for the year 2010-
11, Top ten districts in regards area, production and productivity consisting five
districts form Marathwada region. As per as highest area concern under cotton
cultivation, Aurangabad is on rank 3rd and Jalna on 4th position respectively. Besides,
highest performance in cotton production, Aurangabad acquired 2nd and Jalna 3rd rank
correspondingly. As per as productivity concern Aurangabad occupied 2nd rank and
Latur was on 4th ranks in 2010-11. Therefore it clearly reveals that Aurangabad
district has position among top three districts as area, production and productivity of
cotton in Maharashtra state.
The Aurangabad district has potential to be developed as a textile centre if
processing industries are establish, as good quality of cotton is being produced in
Marathwada. The Aurangabad district in the region witnesses 150 mm less than the
average expected rainfall, dry climatic conditions, due to which the cotton is stronger
and the cotton fiber obtained in the range of medium and long. In the district, Sillod
Taluka is known for best yield. The ginning and pressing mills from other states have
shifted to Sillod, identifying its potential. If cotton processing industries are set up by
farmers who cultivate it, they would earn more profits. Due to better connectivity as
roads, railways and airport, Aurangabad has become a huge cotton textile centre.30

Role of NTC in Revival of Sick Textile Mills:


National Textile Corporation (NTC) was set up to look after the sick textile
mills. By 1985, the NTC has been taken over the management of sick mills in the
country. Though the NTC has been taking measures like modernization and
rationalization of sick mills, a majority of the mills taken over by the NTC still
continue to be sick and running at a loss. NTC had a total of 35 sick mills taken over
from private entrepreneurs under various legislations in the state of Maharashtra. Due
to the continuous loses and erosion of its net worth these mills was referred to Board
of Industrial Financial Reconstruction (BIFR).

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 is the pioneer in the powerloom industry in India. During


2011-12, the state has 55.24% powerloom units in India and over 11 lakh (51.21%)
looms registered among them with anticipated employment about 29 lakh, which
51.21% were as compare to India. In Maharashtra, about 95% of the total powerlooms
are located in five major clusters namely Bhiwandi, Malegaon, Ichalkaranji, Solapur
and Nagpur. There are over 22 lakh powerlooms in India out of that Bhiwandi and
Surat having 7 lakh each, Malegaon 1.50 lakh and Ichalkaranji 1.45 lakh.

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.
Panabaaka Lakshmi in a written reply to a question in the Rajya Sabha. [Statement
refer to in reply to part (a) of the Rajya Sabha Unstarred Question No. 2756 for
05.09.2012] Derived from http://pib.nic.in/newsite/erelease.aspx
19. Arif Anjum & D. V. Thakor (June 2011). An Analytical Study of the Functioning
and the Problems of the Powerloom Industry in Maharashtra with Special Reference
to Malegaon Dist. Nashik. International Journal of Trade, Economics and Finance.
Vol. 2. No. 3

20. Karve, D. K. (March, 2007). Bhiwandi Powerloom Vyavsay- Ek Adhava. ‘Vivek’.

21. Arif Anjum & D. V. Thakor (June 2011). Op. cit.

196
22. City Sanitation Plan‐Zero Draft Report (2012). Malegaon Municipal Corporation,
Malegaon.

23. Desai, S. M & Mrs. Dr. Nirmal Bhalerao (2002). Industrial economy of India.
Mumbai: Himalaya publishing house. P. 361

24. Derived from www.midcindia.org


25. Eco. Survey (2012-13). Op. cit. p. 116
26. Government Resolution No. Policy-2011/C.R.335/TEX-2 dated 2 January, 2012.
27. Desai, S. M Desai & Mrs. Dr. Nirmal Bhalerao (2002). Op. cit. P. 241

28. ibid. p. 242

29. Press Information Bureau. http://pib.nic.in


30. The Times of India (17 Oct. 2013). District Has Potential to Become Textile Hub:
Expert.
31. Desai, S. M Desai & Mrs. Dr. Nirmal Bhalerao (2002). Op. cit. p. 243

197

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