Govt launches 21 new SITPs; concerned about cotton prices

Union Minister for Commerce & Industry and Textiles, Anand Sharma addressing at the National Launch of 21 New SITPs, in New Delhi on April 23.

Top Stories

»	Centre exempts nuclear power goods from customs duty for past imports
»	Indian markets trade higher despite West Asia tensions
»	Sensex, Nifty open 1 pc lower amid West Asia tensions, weak global cues
»	India clocks robust 7.7 pc GDP growth in 2025-26, Q4 growth at 7.8 pc
»	RBI keeps repo rate unchanged at 5.25 pc, maintains âNeutralâ stance

SME Times News Bureau | 24 Apr, 2013
The government will intervene in cotton prices, only if rates fall below the minimum support price (MSP), the Union Minister for Commerce, Industry and Textiles, Anand Sharma Tuesday said during the launch of 21 new textile parks approved under Scheme for Integrated Textile Parks (SITP) in New Delhi on Tuesday.

"We are very comfortable...if the prices of cotton falls below the minimum support price, then the government intervenes and buys from the farmers. Now there are no arrivals. Let's wait for the next crop in October," he told reporters on the sidelines of the function.

The Cotton Association of India (CAI) on has recently said that it has placed the cotton crop for the season 2012-13 at 351 lakh bales as against 373.25 lakh bales in 2011-12.

The cotton arrivals as on March 31 are placed at 294.25 lakh bales. The exports of cotton have virtually come to a standstill in 2012-13 as compared to 127 lakh bales exported in 2011-12, it has said.

Recently the Centre has decided to continue with the existing policy of allowing cotton exports without any restrictions.

Meanwhile, Sharma launched 21 new textile parks approved under Scheme for Integrated Textile Parks (SITP) Tuesday. These new parks take the total number to 61 parks as 40 Parks were sanctioned earlier.

The Scheme for Integrated Textiles Parks (SITP) has been instrumental in development of wide range of models for green field clusters from a 1000 acre FDI driven integrated cluster, to a 100 acre powerloom cluster and a 20 acre handloom cluster. Under the scheme, 61 parks have been sanctioned - 40 projects were started in the 11th Five Year Plan and another 21 projects are to be implemented in the 12th Five Year Plan.

Out of the 40 parks sanctioned earlier, a total of 25 Parks are already operational. Most of the balance Parks are expected to be completed during this financial year. The estimated employment generation is over 10 lac persons with total estimated investment of Rs. 27, 562 crore, the ministry said.

Sharma also released a coffee table book on SITPs. The book encapsulates the broad features of various ITPs set up all over India and is a ready reference for the same. The book gives a brief physical and pictorial status of each ongoing Park approved under SITP. He also released a short film on SITP and visited a photo exhibition that was created to mark the event.

Out of the 21 new parks, six are in Maharashtra, four in Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat, Himachal Pradesh and Jammu & Kashmir.

In this year's budget speech, the Finance Minister announced an additional amount of upto Rs. 10 crores per park for setting up apparel manufacturing units for the projects under the SITP. Necessary action is being taken for implementing the announcement.