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Cotton in India

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T.S Papola., 1967. Geographical wage differentials in an industry: The case of cotton textiles in India.Indian Journal of Industrial Relations. Vol. 3, No. 1, p.p 3-18.
T. S Papola in his research attempted to explain the wage differentials among textile workers in three towns namely Ahmedabad, Bombay and Kanpur. Economic variables namely observed the author used labour market, real wage levels, productivity, industry's characteristics, profitability as well as cost of living. Despite its shortcomings in terms of coverage and methodology, the author managed to come up with the findings by utilizing descriptive statistics.
The conclusion made was that, the real wage levels was the significant determining factor of differentials. Hence, according to him, the wage differentials are bound to widen on the account that the each region's living standards likewise widens. However, he went further to explain that this factor may not solely explain in depth the existing wage differentials. Hence the need to bring in unquantifiable and non-economic variables such as stability, political alliances, trade union’s tactics at various centres, policies of labour in different states, as well as attitudes of mill owners.
Moreover, wage differentials may not be explained by unquantifiable and noneconomic factors but variables such as accidents, custom and convention. In addition, T.S Papola states that, if the research’s findings are accurate and valid, then it is with no doubt that the existing wage differentials will widen with time. This is because the standards of living is a centrifugal force by itself.

Dharma Kumar, S.P. NAG, L.S Venkataramanan., 1948. Cotton Allocation in the Cotton Textile Industry; New York: Asia Publishing House, pp 134-149
This study concentrates on mills in India which became involved in the production of superfine and fine cloth. Hence, it led to loom shifts’ loss. The study found that, as a result, The Textile Production (control) Committee was appointed by the government in 1948 to look into the issue adequately. On January 1949, the committee gave advice on imposing restrictions on production among mills not satisfactorily equipped. On the contrary, these restrictions were not implemented. Hence, the committee felt disappointed. This report also looks at the national plan which explains that among the different sectors of the industry, few parts were given to the overall production. In addition, the mill’s working capital requirements had risen drastically. This is because of the government policies imposing changes in the structure of duties in the middle of a financial year, and the result is growing uncertainty among traders. This led the mills doing contrary to what they do at normal times. The mill’s competitiveness in various regions is also affected by charges and levies apart from exercise duties. For example variation in fuel costs in Bombay and Mandhya Pandresh affects their competitiveness greatly. Without the government interventions on this, the installed utilization capacity is affected significantly. Moreover, this report recognizes that the extent of use of looms has been directly affected by the government’s policy on modernization as well as rationalization. For instance according to a survey conducted by most of the mills which closed were as a result of abnormal labour deployment both per loom and spindle.

T.S Papola., 1967. Geographical wage differentials in an industry: Report of WCPT: Role of managing agents in cotton textile industry in India. P 15-27
The study confined itself to those roles of managing agents having an impact on utilization of looms. They include manipulation of mixings, fixation of remuneration of agents as well as method of purchase and sale. According to the report based on the representatives of labour, is that there are two factors of rationalization of management which should be looked into efficiency, as well as remuneration of management. For total cooperation of labour to be obtained, management’s remuneration should be put on a suitable basis.
Furthermore, efficient management entails setting aside funds to cater for depreciation of machines and equipment and also reserve funds. According to WCPT, although the government had not relieved significant amount of incidence of income tax on depreciation, it was prudent for any management to set aside such funds. Following this, some of the managing agents through certain wise policies had the machines replaced or bought new ones altogether.
The report states that the Commission obtained through the sales of mill’s production, purchase of cotton, articles of the industry and various mill stores is earned by the managing agents. Despite the abuses being low, the report therefore went ahead to suggest that they should give up on the commission earned from purchases and sales. The report moreover feels that the attention should be given to the end of control over distribution which can result in restriction aimed at creating artificial scarcity as a result of greater extent of monopolistic control over distribution.

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