Question

Name the important problems faced by the cotton textile industry in India.

Answer 1

Problems faced by cotton mills

• India has now become short of raw cotton and has to be imported. Fluctuating prices of raw material led to fall in industry
  
• Use of old and absolute machinery led to production with poor quality and high production cost. About 2/3^rd of machinery used is as old as 25 years and more. There is always a need to import cotton because it is an obsolete Industry and there is no longer high usage of cotton in India and the Indian textile industry is losing 184 million kilogramme of cotton yarn and 182 million kilogramme of woven piece goods owing to outdated machinery. It is no longer in a position to compete worlds market.
  
• Labour productivity is low as there are no proper labour rules and poor relation between management and labours exists.
  
• It faces stiff competition from other countries like China, Taiwan, South Korea and Japan whose goods are cheaper and better in quality. in world market.
  
• Wrong and faulty laws of government made cotton industry suffer
  
• Shortage of power supply is another problem its facing today.