India Wool Industry Was a Predominantly Unorganized and Scattered Industry Until the Economic Liberalization of Indian Economy in the 1990s

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WOOLEN INDUSTRY IN JAMMU AND KASHMIR

y Location factors,location factors favouring jammu and Kashmir ( why is the place

favourable??

y A brief history of the industry and it's development in jammu and kashmir

In India, Sheep reaning, spinning and weaving of wool was a part of 'Arya Life'. The weaving and

bleaching of wool is attributed to 'God Pasham' who was God of shepherds and wool is regarded as

ceremonially pure for performing religious functions, used as a rug for prayers and traditional Wool

'Asan' is still used for Puja. The ancient civilization of the Indus Valley revealed that our ancestors

were well versed in the art of wool weaving, spinning, felting and tailoring. During Muslim period,

India was famous for fine Kashmir Woolen fabrics. In early British days, some attention was paid toPashmina Shawls from Kashmir and Punjab etc. and stray attempts were made to improve

indigenous sheep by crossing with imported breeds. After achievement of Independence,

development programmes have been formulated under successive Five Year Plans forSheep and

wool development in the country. India has been famous for shawls and carpets which were

exported in large numbers to European countries during the medieval period. These were greatly

appreciated and highly prized for their fine texture and excellent workmanship. Apart form costly

luxury articles, a variety of other woollen goods such as blankets, lohis, patties, tweeds etc. also used

to be prepared from indigenous wool for everyday use.

India wool Industry was a predominantly unorganized and scattered industry until theeconomic liberalization of Indian economy in the 1990s. After the opening up of the

economy, the Indian wool industry witnessed a stupendous growth.

y present scenario-facts and figures showing production (a comparative study in whichfacts and figures must be used)

The Indian Wool Industry is an important industry since it is one of the prominent sources of

livelihood for the rural India and it represents small, medium, and large scale units. The India

wool Industry is smaller in size in comparison to other textile industries in India. The main

wool producing states of India are Rajasthan, Punjab, Jammu & Kashmir, Karnataka, Gujarat,

Uttar Pradesh Uttaranchal, Andhra Pradesh, Maharashtra, and Haryana. Punjab aloneaccounts for 40% woolen units, while Haryana accounts for 27%, Rajasthan for 10%, and the

rest of the states account for the remaining 23%. The bulk of the wool that is produced in

India is of coarse quality and used mainly in the manufacture of hand-knitted carpets. Therest are being used for the, manufacture of apparel, blankets, finished textiles, garments,knitwear, etc. Further, the India wool Industry also caters to civil and defense requirements

for warm clothing for the Indian Army. The Indian Wool Industry is the 7th largest in theworld and it accounts for about 1.8% of total world production of wool.

INDIGENOUS PRODUCTION OF WOOL The production of indigenous wool in the

Country during the years since 2001-2002 has been as under :



Production of Raw Wool

Year Quantity (in MillionKg.)

Remarks

2001-2002

49.5

2002-2003

50.5

2003-2004

48.5

2004-

200544.6

2005-

200644.9

2006-

200745.2

(Source : Ministry of Agriculture)

Estimated Production of Woollen Items

(Quantity in millions)

Item Unit 2000-

2001 2001-

2002 2002-

2003 2003-

2004 2004-

2005 2005-

2006

2006-2007

(Estimated)

Worsted YarnMn.

(Kgs)43.0 44.00 44.00 44.00 45.00 45.33 45.67

Woollen YarnMn.

(Kgs)

33.0 33.0 34.00 34.00 34.00 34.34 34.68

Wool TopsMn.

(Kgs)27.00 28.00 28.00 28.00 29.00 29.51 30.02

Fabric (Woollen/

Worsted)

Mn.

(Mtrs.)64.0 68.00 66.00 66.00 66.00 66.00 66.00

Shoddy YarnMn.

(Kgs)27.00 26.00 24.00 25.00 26.00 26.00 26.00

Blankets(Shoddy/woollen)

Mn.(Pcs)

13.00 12.00 11.00 11.00 12.00 12.00 12.00

Shoddy FabricMn.

(Mtrs.)18.00 18.00 17.00 17.50 18.00 18.00 18.00

RMG

(Knitwear/Wovenwear and goods)

Mn.

(Kgs.) 14.00 13.00 13.00 13.00 14.00 14.00 14.00

Hand Knotted

Carpets

Mn.

(Sq.Mt)07.50 07.50 08.00 08.00 08.00 08.17 08.34

Machine madeCarpets

Mn.(Sq.Mt)

00.50 00.50 00.50 00.50 00.50 00.50 00.50

This sector provides ample employment opportunities to around 27 lakh people for different



responsibilities across the country. The Indian Woolen Sector can be categorized intofollowing segments:

y Organized Sector: Composite Mills, Combine Mills, Worsted and Non Worsted

Spinning Units, Machine Made Carpets Manufacturing Units.

y Decentralized Sector: Hosiery and Knitting, Powerloom, Hand Knotted Carpets,

Druggest &y Namdahs

The Total no. of registered units: 665

Strengths of Indian wool Industry are as follows:

y Huge woolen textile production capacityy Efficient multi-fiber raw material manufacturing capacity

y Large pool of skilled and cheap work forcey Entrepreneurial skills

y Huge export potential

y Large domestic markety Very low import content

Weaknesses of Indian wool Industry are as follows:

y Increased global competition in the post 2005 trade regime under WTO

y Imports of cheap textiles

y Use of outdated manufacturing technology

y Poor supply chain management

y Huge unorganized and decentralized sector

y High production cost

y Low quality out put

India is the 7th largest producer of wool, and has 1.8% share in total world

production. The production of wool in 2005-06 was 55 million. kg. and it is expected

to have 57.20 million. kg. in yr 2006-07.

The share of apparel grade is 5%, carpet grade is 85%, and coarse grade is 10% of the

total production of raw wool.

Industry is highly dependent on import of raw wool material, due to inadequate production.

The woolen exports in 2005-06 were Rs. 2098.27 crores and it is estimated to Rs. 2360.55

crores for the year of 2006-07.

y problems and prospects-talk about the present diversification

The inability of the value-added wool industry to process the raw wool produced in the state of

Jammu & Kashmir, has resulted in 5.8 million tons of raw wool being sold outside the state at low



prices.

At the same time, while only Rs 20 million is generated from exports of raw wool, the state in turn

buys Rs 60 million worth of finished wool goods from other states.

According to experts, the main reason for this is that, private and state-owned woolen factories have

turned sick and have either closed down or are running partially.

They are also of the opinion that, since the state has a long period of cold weather, if the

government makes it mandatory for government agencies to source uniforms from local

manufacturers, it would help the domestic wool manufacturing sector.

Apart from which, they add by saying that, it would create employment opportunities for thousands

of unemployed youth in the state and also aid the development of wool processing sector in the

state.

The Ministry of Textiles under the Government of India has taken some significant steps to:

y Increase production both qualitatively and quantitatively

y Research for rapid development of woolen products & woolen industry in India

y Increased export of woolen products

Govt. of India has taken initiatives such as,

y Improvement of fiber

y Quality Processing of Wool

These programs are being taken care by Central Wool Development Board, Jodhpur.

Documents

India Wool Industry Was a Predominantly Unorganized and Scattered Industry Until the Economic Liberalization of Indian Economy in the 1990s