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WOOLLEN TEXTILE INDUSTRY
The woollen industry in the country is small in size and widely scattered. It is basically located in the States of Punjab, Haryana, Rajasthan, U.P., Maharashtra and Gujarat. 40% of the woollen units are located in Punjab, 27% in Haryana, 10% in Rajasthan, while the rest of the States account for the remaining 23% of the units. A few of the larger units are located in Maharashtra, Punjab, U.P., Gujarat and West Bengal.

By the end of the current year the Woollen Industry presented the following profile:
a)Total No. of registered Units
675
b)Total No. of persons employed in the Woollen Industry
Approximately 12 lakh
c)Total Exports (excluding hand made carpets, rugs, durries etc.)
1999 - 2000 Rs. 2110.30 crore
2000 - 2001 (upto Dec.’ 2000) Rs. 1523.54 crore
(Source Wool and Woollen Export Promotion Council)
d)Total import of raw wool
1999-2000 66.05 million kg
2000-2001 (upto Nov’ 2000) 39.90 million kg
e)Total import of woollen and cotton rags etc.
1999-2000 71.65 million kg
2000-2001 (upto Nov’ 2000) 79.34 million kg
(Source Directorate General of Commercial Intelligence and Statistics, Calcutta).

The woollen industry in India broadly falls under two sectors:
a) Organised Sector:
i) Composite mills
ii) Combing units.
iii) Worsted and non-worsted spinning units.
iv) Machine made carpet manufacturing units.
b) Decentralised Sector:
i) Hosiery and knitting
ii) Powerloom
iii) Hand knotted carpets, druggets and namdahs
iv) Independent dyeing processing houses.

Since indigenous production of fine quality wool required by the organised mill and the decentralised hosiery sector is very limited, India depends on imports. Imports have been mainly from Australia and New Zealand, the major supplier is Australia. New-Zealand wool is being imported mainly for carpet sector for blending it with indigenous wool. Similarly, for the shoddy sector, import of pre-mutilated woollen/synthetic rags is also allowed under OGL.

INDIGENOUS PRODUCTION OF WOOL
The production of indigenous wool in the country during the years since 1994-95 has been as under:

Production of Raw Wool
Year Quantity (in million kg.) Remarks
1994-95 40.62  
1995-96 41.44 Provisional
1996-97 43.29 Provisional
1997-98 44.74 Provisional
1998-99 45.46 Provisional
1999-2000 46.10 Anticipated
2000-2001 47.00 Anticipated
(Source: Ministry of Agriculture/Central Wool Development Board)

IMPORT
The figures of import of raw wool and rags for the last five years have been as follows: -
(a) Raw wool (Merino/New-Zealand-Greasy/Scoured)

Year Quantity (in Million Kg.)
1995-96 45.53
1996-97 58.46
1997-98 57.12
1998-99 53.97
1999-2000 66.05
2000-2001(upto Nov'2000) 39.90
(Source: DGCI & S, Calcutta)

(b) Rags (woollen and cotton)
Year Quantity (in million kg.)
1995-96 79.87
1996-97 75.28
1997-98 94.42
1998-99 68.34
1999-2000 71.65
2000-2001(upto Nov'2000) 79.34
(Source: Statistics Published by DGCI&S, Calcutta)

Following are the details of import duty on raw material used in the woollen textile industry: -
Sl No. Item Duty (Ad Valorem)
1. Raw Wool (Below 32 Microns) 20 + 4% Spl. Duty
2. Raw Wool (32 Microns and above) 10% + 5% + 4% Spl. Duty
3. Rags (Woollen/Synthetic) 25% + 5% + 4% Spl. Duty
4. Wool Waste 20 + 4% Spl. Duty

NOTE: Raw wool imported by a registered Apex Handloom Co-operative Society or a State Handloom Development Corporation has been exempted from the levy of Custom Duty. This facility has been further extended in 1989-90 to the imports by Khadi and Village Industries Board, which still continues.

Installed capacity in the woollen industry as on 30-09-2000.
i) (a) Wool Combing 29.28 m. kg.
(b) Synthetic Fibre Combing 3.57 m. kg.
ii) Worsted spindles 5.88 Lakh Nos.
iii) Non-worsted spindles 4.25 Lakh Nos.
iv) Powerloom 7228 Nos. (approx. including decentralised sector)
v) Machine made carpet Sector 8.10 lac sq. mt. 8.27 m.kg.

Capacity created during 2000 (till October, 2000) was 8242 MTs under Industrial licence from Secretariat of Industrial Association.

Production of woollen items: -
Item Unit Years
    95-96 96-97 97-98 98-99 99-00 (upto Dec 2000) *00-01
Worsted yarn (kg.) 37.8 37.5 42.0 44.0 44.0 34.0
Woollen& Shoddy Yarn (kg.) 61.6 58.0 63.5 58.0 58.0 46.0
Worsted wearable Fabric (Lin. mtrs) 60.5 60.0 66.0 68.0 69.0 54.0
Knitted Hosiery Goods (kg.) 13.2 12.0 13.5 14.0 14.0 11.0
Non-Worsted Fabric (Lin. mtrs) 13.2 14.0 17.0 15.0 15.0 10.0
(Source: Indian Woollen Mills Federation, Mumbai)
*Anticipated


CENTRAL WOOL DEVELOPMENT BOARD, JODHPUR
The Central Wool Development Board (CWDB) which started functioning from 1989 has been registered as a Society under the Societies Registration Act of Rajasthan to promote growth and development of wool and woollens product through various activities like marketing intelligence, marketing of wool and woollens, price stabilization, standardization of wool and woollen product and quality control.
A sum of Rs. 843 lakh for the Annual Plan 2000-2001 of the CWDB was earmarked, which included UNDP’s and Govt. of India’s share of Rs.243 lakh and Rs.123 lakh respectively towards the UNDP CCF-1 Angora Rabbit Development Project. However, this amount has been revised and reduced to Rs.674 lakh due to difficulty in the import of Angora Germplasm, an important component of the project. Revised budget includes UNDP’s share of Rs.74 lakh and the Government of India’s share of Rs.31 lakh. The Ministry of Textiles has released Rs. 300 lakh, out of which the Board has utilized Rs. 197.35 lakh till February, 2001 on the implementation of various schemes and projects of the Board.
The Board has been administering the following schemes for development of Wool Industry either with the help of the State Government Department/Bodies or through Non Governmental Organization:

1. INTEGRATED SHEEP & WOOL DEVELOPMENT PROJECT
Starting as a pilot project in the year 1991-92, the Integrated Sheep & Wool Development Programme covers the aspects of breed improvement, health coverage, product development, marketing assistance and training to sheep breeders in sheep husbandry and productivity. The programme has been extended to all major wool producing states and is being implemented through their Sheep & Wool Departments/ Animal Husbandry Departments or other State Governmental Organizations.
During 2000-2001, the Board intends to cover 24.75 lakh sheep under this programme and has made a provision of Rs. 329 lakh to continue ongoing projects and to take up fresh projects (6.00 lakh sheep). The Central Wool Development Board has utilized a total of Rs. 64.68 lakh upto October, 2000 under this programme and sanctioned 3 new projects to the Director, Sheep & Wool Department, Government of Rajasthan and provided Rs. 15 lakh as grant in aid for implementation of the projects.

2. ANGORA RABBIT DEVELOPMENT PROGRAMME UNDER UNDP (CCF-1)
The Government of India, Ministry of Textiles has taken up a scheme for the development of Angora wool under UNDP CCF-1 and has appointed the CWDB as implementing agency. The programme envisages to promote production and processing of Angora wool by small farmers and rural unemployed youths of hilly areas of Uttar Pradesh, Himachal Pradesh, Darjeeling and Sikkim. Under this programme it has been proposed to keep financial outlay of Rs.105 lakh for the current year 2000-2001, out of it Rs. 74 lakh will be contributed by UNDP CCF-I and rest of Rs. 31 lakhs would be Govt. of India’s share.
The Board has sanctioned Rs.9.00 lakh for setting up of one Health & one Nutrition Labs each in Himachal Pradesh and Uttar Pradesh and Rs.3.65 lakh to the Wool Research Association, Thane as second installment to undertake Research Project upto October, 2000.

3. INTEGRATED ANGORA RABBIT DEVELOPMENT PROJECT
The project aims at encouraging rabbit farming in remote hilly areas thereby increasing the production of Angora wool resulting in saving of foreign exchange and generation of employment. The project is implemented through State Government organizations as well as through NGOs. During 2000-2001, the Board intends to cover 50 new families under the project and has made a provision of Rs. 4.00 lakh for the purpose.

4. MACHINE SHEARING CUM TRAINING PROJECT
This project has been in operation since 1993-94 for popularizing machine shearing through demonstration and in the process to train sheep breeders to take it up as an economically viable activity. The objective is to increase production and quality of wool and to generate employment amongst the rural youths. During 2000-2001, a provision of Rs.45.00 lakh has been made for continuance of training on 86 on-going machines and for the import of 20 new machines. The Board has utilized Rs3.40 lakh till October' 2000. Necessary action has been initiated to import of 20 new machines.

5. MINI WOOL SCOURING PLANT
The programme is being implemented with a view to set up Mini Wool Scouring Plants for providing scouring facilities to small and cottage industries engaged in the wool sector as such facilities are not available in this sector.
To meet the requirement of such plants in the decentralized sector, one such plant with a provision of Rs.10.50 lakh is being set up during 2000-2001. In 1997-98, the Board sanctioned 5 projects to the States of Jammu & Kashmir, Gujarat, Himachal Pradesh, Maharashtra and Karnataka for setting up of Mini Wool Scouring Plants. Each of the implementing agencies of these States was given an advance of Rs. 5.00 lakh. The second installment of Rs. 5.50 lakh will be provided to them in the current financial year. Therefore, the total provision of Rs. 27.50 lakh has made under this scheme for the current year. The Board has released 2nd installment of Rs. 5.50 lakh to the H.P. State Wool Marketing Federation Ltd., Shimla upto October, 2000.

6. WOOL TESTING CENTRE
The CWDB has taken up this scheme to provide wool testing facilities to wool growers, wool merchants and the wool industry. To set up such centres in different places of potential areas of the country, a provision for setting up of one new Wool Testing Centre has kept during the year 2000-2001. In addition to it, the Board will continue 2 ongoing Centres at Bikaner (Rajasthan) and Beawar (Rajasthan). Therefore, the Board has made a provision of Rs. 16.50 lakh under this scheme. The Board has utilized Rs. 4.03 lakh upto October, 2000 on ongoing Centre.

7. INDUSTRIAL SERVICE CENTRE
The Board is implementing this scheme with a view to providing R&D facilities to the woollen sector at an easy distance. The Board intends to continue its 2 ongoing Centres at Bikaner (Rajasthan) and Kullu (Himachal Pradesh) with a provision of Rs. 17.00 lakh in 2000-2001. The Board has incurred Rs. 1.14 lakh under ongoing Centre upto October' 2000 and has also placed order for purchase of equipments etc. for Industrial Service Centre, Kullu.

8. WEAVING & DESIGNING TRAINING CENTRE, KULLU (H.P. )
The Central Wool Development Board has established a Weaving & Designing Training Centre with a view to train weavers and dyers engaged in woollen handloom in rural areas. It is envisaged that by imparting training in latest technology and designs, they will be able to increase production, improve their earnings and get a better market for their products. They are trained in pre-loom and post-loom processing to improve the productivity as well as quality of woollen handloom fabrics. For 2000-2001, the Board made a provision of Rs. 5.00 lakh to meet the recurring expenditure of the training Centre to train 45 weavers. The Board has trained 30 trainees at Weaving & Designing Training Centre, Kullu and has incurred an expenditure of Rs. 2.38 lakh upto October' 2000.

9. MARKET INTELLIGENCE NETWORK
To create Market Intelligence Network in the country and to build up reliable information system, the Board has established 10 functionary centres in main mandies of the wool producing States of the country. These centres are functioning at Bikaner, Beawar, Panipat, Ludhiana, Jamnagar, Mehboobnagar, Hubli, Mirzapur, Shimla and Jammu. The Board collects information on prevailing market rates of wool and yarn, latest trends and transaction of wool and woollen products on a weekly basis through these centres. The Board compiles and analyses the information received from these centres and disseminates it through a Wool Bulletin among the wool growers, wool merchants, wool users and concerned departments/organisations of the Central and State Governments. During 2000-2001, a provision of Rs.3.00 lakh has been made and the Board has utilized Rs.1.19 lakh upto October' 2000.

10. AREA BASED PROJECT FOR WOOL & WOOLLENS DEVELOPMENT
The scheme provides a comprehensive support in all areas like establishing common facilities centres for weavers and spinners, training to weavers and spinners, upgradation of technology and marketing support, providing processing facilities right from sheep shearing to finishing of woollen products at one Centre. During 2000-2001, the Board has proposed to continue the scheme by taking up one cluster. Therefore, a provision of Rs.15.00 lakh has been made for this year.

11. HUMAN RESOURCE DEVELOPMENT PROGRAMME
It has been felt that Human Resource Development aspects have been somewhat neglected in the wool sector. As the woollen industry has been recognized as thrust area by the Government, it is necessary to make efforts for Human Resource Development to meet the requirements of the woollen industry. The following areas have been identified for undertaking training programmes in the country as well as abroad in collaboration with other wool producing countries: (i) farm management (ii) sheep shearing (iii) testing and report writing (iv) wool marketing (v) processing of wool and woollens products and (vi) quality control. In view of the above objectives, a provision of Rs. 3.00 lakh has been kept for the year 2000-2001. The Board has incurred an expenditure of Rs. 0.19 lakh upto October' 2000.

12. WOOLLEN EXPO
To promote sale of wool and woollen products and to provide better marketing facilities to weavers and spinners in the country, the Central Wool Development Board has taken up this scheme. It has been decided that Mini Woollen Expo would be organised instead of Big Woollen Expo in view of less expenditure and more sales. Hence, budget provision is reduced to Rs. 20 lakh for 5 Mini Woollen Expo’s. The Board has incurred expenses of Rs. 0.22 lakh upto October 2000. The Board has decided to participate in State and District level Melas at Puskar, Jaipur, Jodhpur and Jaisalmer etc.

13. PROMOTIONAL ACTIVITIES
Since the inception of the Central Wool Development Board, it has been carrying out various important activities for promotion of wool and woollens in the country like organizing seminars and workshops, conducting surveys and studies, publication of quarterly news magazine ‘Woolways’, organizing fairs, sales cum exhibition. For such promotional activities during the year 2000-2001, a provision of Rs. 10.00 lakh has been kept. The Board has organized one seminar at Leh and has incurred an expenditure of Rs.1.64 lakh upto October’ 2000.












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