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Ministry ignores some recommendations -- Colour cotton farming proposal rejected

Jayanta Mallick

CALCUTTA, Aug. 13

THE new National Textile Policy (NTxP-2000) document, prepared by the Ministry of Textiles (MoT) and which is now before the Union Cabinet, makes it clear that MoT has chosen to ignore some recommendations of the Sathyam Committee. Also, it has accepted some recommendations only partly.

MoT has rejected the panel's proposal to introduce cultivation of coloured cotton on the ground that it may contaminate the existing popular varieties of white cotton as the areas of cultivation had not been demarcated.

The committee had argued that organically coloured cotton could eliminate the use of toxic dyes, which caused environmental pollution and reported hazards to human health. It had suggested that the ``Government may notify and demarcate certain areas .... for growing eco-friendly cotton, wherever it is possible'' depending on agro-climatic conditions. It had opined that the Centre might set up an internationally accredited certifying agency for organic/coloured cotton.

The suggestion for transfer of synthetic fibres/yarn to the Ministry of Textiles from the administrative control of the Department of Chemicals and Petrochemicals has not been accepted. It has found the existing arrangement appropriate. It also did not a ccept the panel's view that the subject of textiles machinery be shifted to MoT from the Industry Ministry.

MoT has envisaged a review of the hank yarn obligation (HYO) scheme. It has stated in the policy document that measures in this regard would be initiated ``keeping in mind the needs of the handloom weavers''. The Sathyam Committee had suggested that the HYO scheme should be scrapped to improve the economic viability of spinning mills.

The Ministry has also proposed a re-look into the reservation policy in view of the panel's suggestion that hosiery and knitwear be removed from the reserved list. Moreover, it stated that the Handloom (Reservation of Articles for Production) Act, 1985, would be reviewed for repeal/modification.

However, MoT has sidestepped the suggestion for setting up of a rehabilitation fund to bring the potentially viable jute units up to the creditworthiness level of the Technology Upgradation Fund Scheme (TUFS). Its cryptic observation is: ``The Government will continue to play .... proactive and catalytic role. Private sector will be encouraged.''

The expert committee, headed by Mr. S.R. Sathyam, former textiles secretary, was set up to evaluate the existing Textiles Policy formulated in 1985 and to evolve a new set of policy guidelines. Its terms of reference included outlining textile policy fra mework in tune with the country's trade policy reform and dismantling of the Multi-Fibre Agreement on Textile and Clothings (MFA) and associated non-tariff barriers. The panel came into being from June 24, 1998 and submitted its report in August, 1999.