CHENNAI: Explaining how the textile industry in Tamil Nadu is facing a severe crisis due to the increase in cotton prices and, consequently, yarn prices, Chief Minister C Joseph Vijay on Thursday sought the intervention of Prime Minister Narendra Modi to remove the 11% import duty on cotton to ensure the availability of raw material.
“This measure will enable the textile and apparel industry to remain globally competitive, enhance exports as well as protect jobs,” the CM said in his official letter to the prime minister. He added that the increase in cotton prices is primarily due to a shortage of cotton and increased trading activity in the country.
“The price of cotton has increased from Rs 54,700 to Rs 67,700 per candy, which is an increase of 25% in the last two months, while the yarn price has gone up from Rs 301 to Rs 330 per kg. In this situation, the continued supply of raw material can be ensured only through imports. However, there is an import duty of 11% on cotton,” Vijay explained.
He further said, in the given situation, permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive.
“After agriculture, the textile and apparel sector is one of the largest employment-generating sectors. Hence, there is a significant responsibility on the government to safeguard the employment of lakhs of people and ensure the sustainability of the textile value chain,” he added.
‘Recommendations made to completely abolish import duty’
Coimbatore: Union Textile Commissioner Vrunda Manohar Desai on Thursday said that recommendations have been made to the union government to completely abolish the 11% import duty on cotton or at least permit duty-free imports during the shortage period from April to September. Addressing a consultative meeting with all textile associations and stakeholders, she said, “Recommendations have also been submitted to impose additional duties on specific categories of low-priced fabrics imported from countries.”