SPEECH OF SHRI RAJEEV R. KAPUR, CHAIRMAN, INDIAN WOOLLEN MILLS’ FEDERATION AT THE 35TH ANNUAL GENERAL MEETING ON SATURDAY, THE 20TH SEPTEMBER, 2008 AT THE PLAZA ROOM, HOTEL MARINE PLAZA, MUMBAI.

I have great pleasure in extending a warm welcome to all of you to this combined Annual General Meeting of the Indian woollen industry and also the distinguished guests and also senior officials of the Government

It is needless to mention that the slow down in the textile industry during the year 2007-08 has its effect on the growth of the woollen textile industry also. We hope the situation would improve during 2008-09 comparatively.

You are aware that Federation has been representing to the Government on some of the burning issues which still remain unsolved. Some of these problems are :

1. Abolition of import duty on Raw Wool; Fine Animal Hair  & Woollen  Rags
2. Reduction of basic import duty on wool tops  from 20% to 10%
3. Reduction of  basic import duty on wool waste from 15% to 5%
4. Abolition of import duty on flax fibre
5. Exemption of flax fibre from levy of 4% additional duty of customs
6. Reduction of basic import duty on Nylon filament yarn and Polypropylene Filament yarn  from 10% to 5%
7. Reduction of basic import duty on Nylon staple fibre  and Polypropylene staple fibre   from 10% to 5%
8. bolition of import duty on specified textile and garment machinery (including woollen machinery) covered by list Nos. 30, 31 & 46(D); Textile and garment machinery  falling under Chapter   Heading   84.44   to   84.49, 84.51  & 84.52  (except 84.52.10, 84.52.30.10 and 84.52.90.10) and Spare Parts for general textile machinery and also for machinery covered    under List No.46(D)

Federation has made request to the Government to remove the ban on setting up of shoddy industry in SEZ/EOU areas, which appears in Para 7 of Appendix 14-1-C of Hand Book of Procedures so that the shoddy industry can flourish in the country.

Time has come now that textile industry organize itself and strengthen the Indian Woollen  Mills’ Federation, which is a platform for solving the problems of the industry and face  the new problems that may crop up from time to time.

FTA / PTA / BILATERAL TRADE AGREEMENTS:
 
Indian Woollen Mills’ Federation has been submitting comments on finalization of sensitive lists with various countries for safeguarding the interest of India, owing to high export strength at competitive prices of different countries. Federation is regularly attending the meetings called for discussing FTAs/PTAs/ Bilateral Trade Agreements and taking very cautious approach with regard to textile and clothing sector while negotiating FTAs/PTAs/Bilateral Trade Agreements. Indian woollen textile industry has to find ways and means to become more competitive, as these are the days of FTAs/PTAs/Bilateral Trade Agreements.

We have made representation to the Ministry  giving our comments regarding finalization of sensitive track list under India-ASEAN FTA safeguarding the interest of India, owing to high export strength at competitive prices of certain member countries  of ASEAN and also against well established overseas manufacturing capabilities.

FTA with European Union:

Indian Woollen Mills’ Federation has been submitting comments on finalization of sensitive lists with various countries for safeguarding the interest of India, owing to high export strength at competitive prices of different countries. Federation is regularly attending the meetings called for discussing FTAs/PTAs/ Bilateral Trade Agreements and taking very cautious approach with regard to textile and clothing sector while negotiating FTAs/PTAs/Bilateral Trade Agreements. Indian woollen textile industry has to find ways and means to become more competitive, as these are the days of FTAs/PTAs/Bilateral Trade Agreements.

TUF SCHEME:

The Government is encouraging investment in textile sector which has been further extended upto 2012 by the Government. Federation has been participating in the meeting called by the Technical Advisory-cum-Monitoring Committee (TAMC). Our request for inclusion of machinery under TUF Scheme has been attended to by the Ministry.

WOOL DATA AT A GLANCE:

The woollen textile industry is a rural based; export oriented industry in which the organized sector, the decentralized sector and the rural sector complement each other. The industry provides employment to about 27 lakh workers in a wide spectrum of activities. India has 3rd largest sheep population in the world, having 6.15 crores sheep (as per 2003 census) The wool production in India is 45.2 million kg. (2006-07) State-wise sheep population 2003 (All States) were 61479 (in 000) State-wise wool production 2005-06 (all states) was 44884 (in 000 kg.) Quantity of raw wool imported during 2007-08 was 93.07 million kgs. Value of total imports of raw wool during 2007-08 was Rs.1,089.51 crores. Quantity of woollen and cotton rags imported during 2007-08 was 92.47 million kgs. Value of total imports of woollen and cotton rags imported during 2007-08 was 95.81 crores. Total value of exports of wool and woollen items during 2007-08 was 5447 crores.

Federation has always maintained close contact with all the Government authorities and the Textile Associations in India. I would like to take this opportunity to convey our gratitude to the Ministry of Textiles, Ministry of Finance, Central Board of Excise & Customs, Ministry of Commerce & Industry for their co-operation and assistance.

I would also like to express my sincere thanks to my co-office bearers, my colleagues in the Managing Committee for their support and guidance during the year.

I would like to take this opportunity to greet the new Textile Commissioner, Shri A.B. Joshi, who has taken over charge from Dr. J.N. Singh, the vibrant Textile Commissioner and I assure that the present incumbent will also assist the wool and woollen textile industry in general and Indian Woollen Mills’ Federation in particular in solving the problems of the industry.

Thank you,