The Cotton Textiles Fund Ordinance, 1944, provides for the establishment of a cotton textiles fund and the Constitution of a Committee to administer the Fund. The fund was originally created from the poceeds of the levy of a duty of customs at 3 per cent on the ex-mill prices of cloth and yarn exported and later on the Central Government used to make contributions to the Fund. The Cotton Textiles Fund Committee has been doing useful work and the inspection Scheme of the Committee has found increasing popularity and authenticity in trade circles, both in India and abroad.2. In recent years, however, conditions in the Textiles industry have changed. Indian cloth is facing ever increasing competition in the international markets from other exporting countries like Japan, China etc. The Millowner's Association and the manufacturers of textile machinery in India have been stressing necessity of an independent Inspectorate for indigenous textile machinery. In order to meet their needs, the Tariff Commission recommended in 1960 that adequate arrangements should be made for impartial investigation of all complaints from the consuming industries about the quality of indigenous products and for keeping a continuous watch over the progress of the Textile machinery as a whole. Under the existing Ordinance, the powers of the Committee have not been clearly defined and they are also restricted in scope.
