There has been significant increase in the output of cotton cloths in the country. It was 15,431 million sq meters in 1990-91 which increased to 20,632 million sq. meters in 2004-05 exhibiting more than 34 per cent of increase during the last 14 years. Table 20.IV exhibits trend in the production of cotton yarn and cloths in the country between 1950-51 and 2004-05.

There has been more than four times increase in the production of cotton yarns and cotton cloths between 1950-51 and 2004-05. The table also shows that in 1950-51 over percent of the cotton cloth was manufactured by the mill sector. This share was reduced to about 41 per cent in 1980-81 and only 5.1 per cent in 2004-05. The remaining output is provided by the handloom and power loom sector.

The total cloth production in 1950-51 was 4215 million square meters; the mill sector account­ing for 3401 million square meters (80.69%) and the decentralised sector of power looms and handlooms, 814 million square meters (19.1%). By 1980-81 the mill sector was overtaken by the decentralised sector with contributions of 41.03% and 58.96% respec­tively. By 2004-05 there was further shortfall in the share of mill sector (5.08 per cent).

Even in mill sector 67.4 per cent of the cloth production is of medium varieties, 3.1 per cent of fine varieties, 6.9 per cent of super-fine varieties, and 20.1 per cent of coarse varieties. The coarse and medium varieties are also manufactured under government control to meet the demands of the home market.

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It is also significant to note that whereas the production of yarn has considerably increased dur­ing the recent years, the output of cloths in mills has either declined or has remained stagnant. Obsolete machinery, lack of modernisation, power shortage, labour problems, excessive government controls, etc. are some of the causes responsible for such situation.