Within five years Maharashtra will have enough spinning mills to process the raw cotton grown by its farmers.
At present the state can process only 30 per cent of its cotton.

In the past, spinning mills were set up in parts of Maharashtra that were not cotton producing. The new policy ensures this mismatch is done away with and the foundation of a properly planned cotton-to-cloth chain development is laid.

Some 115 tehsils have been declared as cotton growing areas in Maharashtra.

Out of these, as many as 55 tehsils are in Vidarbha region alone. A tehsil is defined as one with cotton production of 9,600 tons per annum. This is the amount of cotton production needed to sustain a co-operative spinning mill.

The objective of the decision is to identify tehsils where co-operative spinning mills can be set up under the new textile policy. The decision of declaring 115 tehsils as cotton growing will have a long-term impact on the growth of the textile sector in a planned manner.

The state has made provisions to infuse higher seed capital and incentives for textile entrepreneurs. The market will be strengthened through the farm to fashion policy.

The decision to keep electricity tariff rates low for textile traders has made the sector, especially the handloom industry, more competitive.