ANNUAL REPORT 2001-2002

CHAPTER VII

WOOLLEN TEXTILE INDUSTRY

The Woollen Industry in the country is small in (ii) Powerloom

size but widely scattered. It is basically located
(iii) Hand Knotted Carpets, Druggets and
in the States of Punjab, Haryana, Rajasthan,
Namdahas
U.P., Maharashtra and Gujarat. 40% of the
woollen units are located in Punjab, 27% in (iv) Independent Dyeing, Processing
Haryana, 10% in Rajasthan, while the rest of Houses.
the States account for the remaining 23% of Since the indigenous production of fine
the units. A few of the larger units are located quality wool required by the organised mills
in Maharashtra, Punjab, U.P., Gujarat and and the decentralised hosiery sector is very
West Bengal. limited, India depends largely on import,

The Woollen Industry presents the following scenario:

(a) Total no of registered units 714
(b) Total no. of persons employed in the woollen industry 12 lakh approx.
(c) Total exports (excluding handmade carpets, rugs,
durries etc) during 2000-01 (Source: DGCI&S, Calcutta) Rs. 1665.84 crore
(d) Total imports of raw wool during 2000-01
(Source: DGCI&S, Calcutta). Rs. 456.35 crore
(e) Total imports of woollen & cotton rags (2000-01)
(Source: DGCI&S, Calcutta) Rs.143.75 crore

The Woollen Industry in India broadly falls Australia and New Zealand being the
under two sectors: major suppliers. New Zealand wool,
which is rich in luster is imported mainly
(A) ORGANISED SECTOR:
by the Carpet Sector for blending it with
(i) Composite Mills
indigenous wool. Similarly, for the
(ii) Combing Units
shoddy sector, import of pre-mutilated
(iii) Worsted and Non-Worsted Spinning
woollen/cotton rags is also allowed
Units.
under OGL.
(iv) Machine made Carpet Manufacturing
Units. INDIGENOUS PRODUCTION:
(B) DECENTRALISED SECTOR:
The production of indigenous wool since the
(i) Hosiery and Knitting
year 1994-95 is as given in Table no. 7.1

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Table No. 7.1 material used in the Woollen Textile Industry: -

Year Quantity (In Million Kg)
1994-1995 40.62 Item BCD SAD Total
1995-1996 41.44 (P)
1996-1997 43.29 (P) Raw Wool (Below 32 Microns) 15% 4.60% 19.60%
1997-1998 44.74 (P)
Raw Wool (Above 32 Microns) 5% 4.20% 9.20%
1998-1999 45.50 (A)
1999-2000 46.50 (A) Rags - Woollen/Synthetic 25% 5.00% 30.00%
2000-2001 47.00 (A)
Wool Waste 15% 4.60% 19.60%
P: Provisional
A: Anticipated
(i) BCD - Basic Custom Duty.
(Source: Ministry of Agriculture / Central Wool (ii) SAD - Special Additional Duty.
Development Board)
NOTE: Basic Custom duty on raw wool imported by
Apex/State Handloom Co. operative Society, Khadi and
IMPORT OF RAW WOOL & RAGS:
Village Industry Commission and by State Khadi and Woollen
Industry Board has been raised from Nil to 5%. However, it
The figures of import of raw wool and rags
continues to be exempted from Special Additional Duty of
for the last five years are as follows: - Customs (SAD).
(a) Raw Wool (Merino/New-Zealand-
INSTALLED CAPACITY AS ON 30.09.01:
Greasy/Scoured).
Year Quantity
Year Quantity (In Million Kg) i) (a) Wool Combing 29.28Milion Kg.
1996-1997 57.76 (b) Synthetic Fibre Combing 3.57 Million Kg.
1997-1998 57.71 ii) Worsted Spindles 5.98 lakh nos.
iii) Non-worsted Spindles 4.26 lakh nos.
1998-1999 54.99
iv) Powerloom including
1999-2000 61.41 decentralised sector. 7228 nos. (Approx.)
2000-2001 55.10 v) Machine made carpet 8.10 sq. mtr.
2001-2002 45.84 sector 2.27 Million Kg.
(up to April-Oct. 2001)
Capacity permitted by way of Information
(Source: DGCI & S, Calcutta)
Memorandum and letter of Intent as well as
(b) Rags (Woollen& Cotton) for 100% EOUs from 1/04/2001 to
Year Quantity (In Million Kg)
30/09/2001:
1997-1998 83.34 (a) Details of Industrial Licence from SIA
1998-1999 70.84 Ap r i l 2001 t o S e p t . 2001.
1999-2000 71.97 Month Nos. Item Annual Capacity
2000-2001 97.32
April 2001 1 Woollen - 380 M.T.
2001-2002 47.72
Worsted Yarn
(up to April-Oct. 2001)
June 2001 1 Shawl 92 powerlooms
(Source: DGCI & S, Calcutta)). Yarn Dying 5000 kg per day
Sept. 2001 1 Dying Acrylic
Following are the details of import duty on raw Yarn 46 M.T.

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(b) Details of IEM received from SIA during woollen product and quality control. The
1-04-2001 t o 30-09-2001 Board started its functions since the year
Capacity 1989 and was registered as a Society under
Month Nos. In terms of In terms of
Spindle quantity
the Societies Registration Act of Rajasthan
April 2001 1 -- 176 M.T. in 1996.
May 2001 1 -- 50,00,000 Pcs.
Sept. 2001 1 4308 --
The Central Wool Development Board
2 -- 95,90,300 Sq. Mtr. has been reconstituted under the
3 -- 4,955 Tons
chairmanship of the Union Minister for
(c) Details of 100%EOU received from SIA Textiles on 26th June, 2001 for a period of
d u r i n g 1. 04. 2001 t o 30. 09. 2001 two years with a total membership of 29
Capacity including its Chairman and the Member
Month Nos. In terms of In terms of
Spindle quantity Secretary.
June 2001 1 -- 4,50,000 Mtrs
The activities of the Board are supported by
Production of Woollen items Quantity in Millions

Item Unit 1996-97 1997-98 1998-99 1999-2000 2000-2001(E)

Worsted Yarn (Kg.) 37.5 42.0 44.0 45.00 43.0

Woollen & Shoddy Yarn (Kg.) 58.0 63.5 58.0 58.0 60.0
Worsted wearable Fabric (Lin.Mtrs.) 60.0 66.0 68.0 68.0 64.0
Knitted Hosiery Goods (Kg.) 12.0 13.5 14.0 14.0 14.0
Non - Worsted Fabric (Lin.Mtrs) 12.0 17.0 15.0 16.0 18.0

E: Estimated
(Source: Indian Woollen Mills Federation, Mumbai).
grant-in-aid by the Ministry of Textiles, given
through and regulated according to the
CENTRAL WOOL DEVELOPMENT Five Year and Annual Plans. For the Annual
BOARD (CWDB), JODHPUR: Plan 2001-02, a sum of Rs. 800 lakh was
allocated to the Board for its various
The Central Wool Development Board
schemes and programmes. The allocation
(CWDB), Jodhpur was constituted by the
includes UNDP's share of Rs. 300 lakh and
Government of India, Ministry of Textiles in
Government of India's share of Rs. 73 lakh
1987 to promote growth and development under the UNDP CCF-1 Angora Wool
of wool and woollens through various Development Project. The Ministry of
activities like marketing intelligence, Textiles has released Rs. 325 lakh during
marketing of wool and woollens, price the current year. The Board has utilized Rs.
stabilization, standardization of wool and 200.02 lakh till 31st December, 2001on

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the implementation of various schemes of Harayana, Uttar Pradesh,

and projects of the Board. Maharashtra and Jammu & Kashmir and
provided Rs. 108 lakh as grant in aid
The Board has been administering the
for implementation of the new projects.
following schemes for the development
(ii) Angora Rabbit/Pashmina
of Woollen Industry with the help of the
Development Programme
State Government Department/Bodies
under UNDP (CCF-1):
or through Non Governmental
Organizations (NGOs): The Govt. of India, Ministry of
Textiles has taken up a scheme for
(i) Integrated Sheep & Wool
development of Angora wool under
Development Project:
UNDP CCF-1, which is being
Starting as a pilot project in the year implemented through the CWDB. The
1991-92, the Integrated Sheep & Wool programme envisaged production and
Development Programme covers the processing of Angora wool by small
aspects of breed improvement, health farmers and rural unemployed youths of
coverage, product development, hilly areas of Jammu & Kashmir, Uttar
marketing assistance and training to Pradesh, Himachal Pradesh, Darjeeling
sheep breeders in sheep husbandry and and Sikkim. Under this programme a
productivity. The programme has been financial outlay of Rs. 373 lakh for the
extended to all major wool producing current year 2001-2002 has been
States and is being implemented made, out of which Rs. 300 lakh will be
through Sheep & Wool contributed by UNDP CCF-I and the rest
Departments/Animal Husbandry of Rs. 73 lakh would be Government of
Departments or other State Government India's share.
Organizations.
The scheme aimed to obtain
During 2001-02, the Board intends imported germplasm to improve the
to cover 38.75 lakh sheep under this strain and fibre quality of Indian Angora
programme and has made a provision Rabbits, but unhappily the germplasm
of Rs. 266.20 lakh to continue ongoing could not clear quarantine
projects and to take up fresh projects. requirements. The scope of the scheme
The Central Wool Development Board has therefore had to be limited to a
has utilized a total of Rs. 124.59 lakh smaller area and to improvement of
upto 31 st December, 2001 under this fibre quality by interchange of
programme. The Board sanctioned 10 indigenous Angora breeds between
new projects to the State Governments states. A project for development of

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Pashmina in Lakadh has been taken up, demonstration and in the process to
with a view to improving incomes of the train sheep breeders to take it up as an
pashmina goat rearers by encouraging economically viable activity. The
value addition upto wool top stage objective is to increase production and
within the region. The Woollen quality of wool and to generate
Research Association is providing employment amongst the rural youth.
technical advice to the project, and
During 2001-2002, a provision of Rs.
costs are being shared by Government
10 lakh has been made for continuance
of India, Ladakh Autonomous Hill
of training on 106 ongoing machines
Development Council and UNDP. A
with the help of implementing agencies.
budget of Rs.610 lakh has been
The Board has utilized Rs 1.80 lakh till
envisaged.
31 st December, 2001 under this
(iii)Integrated Angora Rabbit
scheme.
Development Project:
(v) Mini Wool Scouring Plant:
The scheme aims at encouraging rabbit
farming in remote hilly areas thereby The programme aims at setting up

increasing the production of Angora wool Mini Wool Scouring Plants for providing

resulting in saving of foreign exchange and scouring facilities to small and cottage

generation of employment. The projects are industries engaged in the wool sector as

being implemented through State such facilities are not available in the

Government organizations as well as through unorganized sector. In 1997-98, the

NGOs. During 2001-02, the Board has Board sanctioned 5 projects to the

made a provision of Rs. 8.90 lakh under this States of J&K, Gujarat, H.P.,

scheme to continue ongoing projects and to Maharashtra and Karnataka for setting

take up one new project to cover 50 new up Mini Wool Scouring Plants. During

families. The Board has released an amount 2001-02, a provision of Rs. 15 lakh has

of Rs. 0.60 lakh till 31st December, 2001 been made for installation of one new

under this project. Plant. Accordingly, the Board has

sanctioned one project in favour of
(iv) Machine Shearing - cum -
Ladakh Autonomous Hill Development
Training Project:
Council, J&K State to set up the plant at
The project has been in operation Leh. The Board has utilized Rs. 11.77
since 1993-94 for popularizing lakh till 31 st December,2001 under the
machine shearing through scheme.

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(vi) Wool Testing Centre:
The Board has taken up this scheme
to provide wool testing facilities to wool
growers, wool merchants and the wool
industry. The Board intends to continue
its 2 ongoing centres at Bikaner and
Beawar (Rajasthan) with a provision of Rs.
10 lakh during the current financial year.
The Board has utilized Rs. 3.04 lakh upto
31st December,2001 on these ongoing
Centres.
(vii) Industrial Service Centre:
The Board intends to continue its 2
ongoing Centres at Bikaner (Rajasthan)
and Kullu (H.P.) with a provision of
Rs. 15 lakh in 2001-02 and has spent
Rs. 8.91 lakh on these ongoing Centres
upto 31 st December, 2001.
(viii) Weaving & Designing Training
Centre, Kullu (H.P.):
The Central Wool Development
Board has established a Weaving &
Handloom Weaving
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Designing Training Centre with a view to
training weavers and dyers engaged in
woollen handlooms 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 2001-2002, the Board has made a
provision of Rs. 05.00 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 by
incurring an expenditure of Rs. 2.39
lakh upto 31 st December, 2001.
(ix) Market Intelligence Network:
In order to setup the Market Intelligence
Network in the country 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
situated at Bikaner, Beawar, Panipat,
Ludhiana, Jamnagar, Mehboobnagar,
Hubli, Mirzapur, Shimla and Jammu.
For 2001-02, a provision of Rs. 03.00
lakh has been made under this scheme,
and the Board has utilized Rs. 1.20 lakh
upto 31 st December,2001.
 ANNUAL REPORT 2001-2002

(x) Area based Project for Wool recognized as thrust area by the
& Woollens Development: Government, it is necessary to make

This scheme provides a comprehensive efforts for the development of human

resources to meet the requirements of
support in all areas like establishing
the Woollen Industry. With this end in
common facility centres for weavers and
view, the Board has identified the
spinners, for training, upgradation of
following areas for undertaking training
technology and marketing support by
programmes in the country as well as
providing processing facilities right from
abroad in collaboration with other wool
raw wool to finishing and marketing of
producing countries: (i) farm
woollen products at one Centre. During
management (ii) sheep shearing (iii)
2001-02, the Board has proposed to
testing and report writing (iv) wool
continue the scheme and a provision of
marketing (v) processing of wool and
Rs. 1.00 lakh has been made for this
woollens products and (vi) quality
year.
control. A provision of Rs. 3.00 lakh has
(xi) Human Resource Development been kept for the year 2001-02. The
Programme: Board has incurred an expenditure of
It has been felt that Human Resource Rs. 0.43 lakh upto 31 st December,
Development aspects have been 2001 by providing training to
somewhat neglected in the woollen progressive wool growers at training
sector. As the Woollen Industry has been institutions of ICAR.

Union Textile Minister, Hon’ble Shri Kashiram Rana, at Central Wool Development Board organised
“Woollen Expo - 2001” Ahmedabad, Gujarat

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(xii) Woollen Expo:
The Board has taken up the programme
of the organizing woollen expos to
promote sale of wool and woollen
products and to provide better
marketing facilities to weavers and
spinners. During 2001-2002, the Board
has decided to organize two Woollen
Expos at Ahmedabad and Jodhpur
during the winter season with a financial
provision of Rs. 19.00 lakh. The Board
has incurred an expenditure of Rs.
12.83 lakh upto 31 st December, 2001.
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Promotional Activities:
Since 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 & workshops,
conducting survey and studies, publication of
quarterly news magazine "Woolways",
organizing fairs, sales cum exhibition. For this
purpose, a provision of Rs. 4.00
lakh has been kept during the current
financial year. The Board has incurred an
expenditure of Rs. 1.06 lakh upto 31st
December, 2001.