Reiterating his request for the removal of the 11% import duty levied on cotton, among other demands, Tamilnadu Chief Minister M K Stalin has written to Union Textiles Minister Piyush Goyal, seeking his intervention to resolve the grim situation pertaining to cotton and yarn price volatility.
Stalin noted that the unprecedented hike in yarn and cotton prices has badly hit the textile sector in Tamilnadu. He requested Goyal to remove the 11 percent import duty levied on cotton to prevent the further rise of cotton prices, revamp commercial terms and conditions prescribed by Cotton Corporation of India for e-auction of cotton by reducing the minimum lot size to 500 bales, give preference to yarn manufacturers in the procurement of cotton rather than traders.
He also sought the Union government to extend a 5% interest subsidy to the spinning mills towards procurement of cotton during the peak season of December to March. In November and December 2020, the cost of cotton (29 mm) was Rs 39,000 a candy, but it rose to Rs 75,000 a candy during November and December 2021.
‘If this situation is not resolved, a large number of looms and apparel and home textile units may soon become unviable, resulting in closures and consequent large-scale unemployment and industrial unrest in the State,’ Stalin added.
Recalling that he had made these three requests in a letter written to Piyush Goyal in November last year, Stalin said that textile players are of the view that no concrete steps were taken by the Center to control the prices.
