Industry

Covid-19 led to deviation in FY21 BE, expenditure for handloom: Govt to Parliament


Textiles minister Piyush Goyal told the Rajya Sabha on Thursday that the conditions emanating from Covid-19 pandemic led to disruptions in overall economic activities at large leading to demand and supply shifts in the offtake of raw materials and finished goods including in the handloom sector.

“There was also a fall in the number of viable proposals like marketing expos, subsidized yarn supply, etc., from the state governments and yarn supply beneficiaries,” he said in a written reply, adding that the Budget Estimates, Revised Estimates and actual expenditure for handlooms for FY21 are Rs 475 crore, Rs 336 crore and Rs 315.95 crore, respectively.

Besides, the pandemic also slowed down the implementation of other schematic interventions such as skill upgradation programmes, distribution of looms and accessories and Mudra loans.

“These factors led to a deviation between the budgetary estimates and actual expenditure in 2020-21,” he said.

EXPORTS TO CHINA

The export of cotton and yarn from India to China has not stopped due to Covid-19 pandemic, Parliament was informed.

Minister of State for textiles Darshana Jardosh told the Upper House that during current cotton season 2020-21 (October 2020-September 2021) as on April 2021, 21.97 lakh bales of cotton were exported from India to China out of the total exports of 54.83 lakh bales.

“China was the second largest importer of cotton from India after Bangladesh,” she said.

Regarding export of yarn, during the year 2020-21 from Apr, 2020 to Mar, 2021, 275 million kg of cotton yarn were exported from India to China out of the total exports of 980 million kg. China was the largest importer of yarn from India, the minister said in a written reply.

GST

The government informed Parliament that the Department of Revenue, finance ministry has informed that in principle, agreement has been reached on correcting duty inversion in textiles by prescribing revenue neutral rate on fabrics and garments.

“However, decision in this regard has been deferred by GST Council,” Minister of State for textiles Darshana Jardosh said in a written reply to a question on whether there is any plan to impose uniform GST on raw materials used in textile industry, handloom, weavers’ work and handicrafts.

As per the reply, no study has been conducted to know the impact of non-uniform rate of GST on raw materials used in craft work across the country in handloom, weaving, handicrafts and cottage industries.

FINISHED GOODS SUBSIDY

The government has no such proposal under consideration for providing subsidy to the handloom weavers on finished products, Parliament was informed. However, to encourage handloom agencies for sale of finished products, the textiles ministry has Marketing Incentive scheme for which the handloom agencies across the country are eligible to improve competitiveness of handloom products, to invest in infrastructure and improve productivity.



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