TEXTILE AND SUGAR INDUSTRIES
The textile industry occupies a vital
place in Indian economy and contributes substantially to its exports
earnings. Textiles exports represent nearly 30% of the country's
total exports. It has a high weightage of over 20% in the national
production. It provides direct employment to over 15 million persons
in the mill, powerloom and handloom sectors. India is the second
largest producer of silk, largest producer of jute, one of the largest
production base for cotton/Denims and never-tried-before blends
About six per cent of world merchandise
trade is constituted by textile and clothing. Indian textile industry
is worth around Rs.800billion (US$ 22.05 billion) accounting for
approx. 20% of India's total industrial output. Textiles exports
of US$ 10.5 billion achieved in 1997-98 accounted for more than
one-third of India's overall exports. India's textiles exports are
increasing at the rate of 20% annually and a target of US$ 20 billion
has been set by 2000.
India is the largest consumer and second largest producer of sugar
in the world. With over 450 sugar factories located throughout the
country, the sugar industry is amongst the largest agro processing
industries in India, with an annual turnover of Rs150bn.
Domestic sugar industry typically
follows a 5 year cycle. Higher sugarcane and production results
in a fall in sugar prices and non-payment of dues to farmers. This
compels the farmers to switch to other crops causing a shortage,
which in turn results in a increase in sugarcane prices and extraordinary
profit. Taking into account the higher prices for cane, the farmers
switch back to sugarcane, which completes the cycle.
Based on the estimation of 6% of GDP
growth rate and population growth rate for the period 1998-99 to
2000-01, the demand for sugar is expected to grow at the rate 7%
for the corresponding period. This will lead to increase in demand
for sugar from 15.8 kg in 1997-98 to 1998-99 and 17.7 kg in 2000-01.
The production of sugar has increased
in the past from 0.12mn ton in 1930-31 to 12.85 mn ton in 1997-98
at a CAGR of 7.23% The number of sugar mills for the corresponding
period has increased from just 29 in 1930-31 to around 412 in 1997-98.