Tamil Nadu CM MK Stalin Writes to PM Modi Over Rising Cotton, Yarn Prices

Tamil Nadu Chief Minister MK Stalin on Monday, 16 May, wrote to Prime Minister Narendra Modi seeking his immediate intervention to solve the “serious disruptions” faced by the textile industry in the state. The chief minister said that despite the Union government withdrawing import duty levied on cotton, the prices of cotton and yarn have been continuously on the rise, he said.“This precarious situation has widespread ramifications for the textile industry in Tamil Nadu. A large number of spinning, weaving, and garment units face the danger of closure due to unsustainable demands on their working capital and price mismatch between the agreed price of supply to the buyer vis-a-vis the cost of production. As a result, the manufacturers of garments are suffering huge losses and many MSME units have already closed their operations,” Stalin said, adding that it has resulted in “massive job losses in a sector that is traditionally an employment generator”.In his letter, Stalin sought three immediate steps to control the price hike and the disruptions caused by it. Stock declaration for cotton and yarn may be made mandatory for all spinning mills so that actual data on cotton and yarn availability will be there; the Union government should issue suitable clarifications that waiver of import duty will be available for all contracts entered up to September 30, 2022; and extend the cash credit limit of the spinning mills to purchase cotton up to 8 months in a year, against the current three months, he said in the letter.'Custodial Deaths Can't Be Justified': TN CM Stalin Assures Zero Lock-Up DeathsMeanwhile, former chief minister and AIADMK Coordinator O Panneerselvam also issued a statement saying that the Tamil Nadu government should probe the reasons for the increase in yarn prices despite the reduction in taxes. “The state government has the responsibility to find out the people who are hoarding the cotton to create an artificial scarcity resulting in the price increase,” he said.Panneerselvam also said that the Union government has removed import duty on cotton and halted the hike in goods and services tax (GST) to 12% on textiles. The garment industry expected the cotton prices would come down due to these measures. But on the contrary, prices of cotton and yarn have gone up, he said.(Published in arrangement with The News Minute)

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Tamil Nadu CM MK Stalin Writes to PM Modi Over Rising Cotton, Yarn Prices

Despite the government withdrawing the import duty levied on cotton, prices continue to remain on the rise.

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Topics: Tamil Nadu PM Modi Cotton