Tamil Nadu Chief Minister Vijay sent a letter to Prime Minister Narendra Modi urging him to remove 11% import duty on cotton on Thursday.
In the letter, CM Vijay expressed concern over the looming crisis
in the textile sector, which is the largest employer of rural women in the state.
The chief minister said that an increase in cotton & yarn prices led to “severe crisis”. The production shortages and increase in trading activity have led to an increase in prices.
“Tamil Nadu is India’s largest textile and apparel exporting state. Lakhs of people are dependent on this sector for both direct and indirect employment. especially women primarily from rural and semi-urban backgrounds. Of late, the industry is facing a severe crisis due to an increase in cotton prices and, consequently, yarn prices. I understand this is caused primarily due to the shortage of cotton production and increase in trading activity in the country,” Vijay wrote in a letter.
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The newly elected chief minister said that cotton prices have increased by 25% in the last two months, increasing from Rs 54,700 to Rs 67,700 per candy.
He further said that yarn prices have increased from Rs 301 to Rs 330 per kg, which has led to a significant raw material shortage for the industry.
“The price of cotton has increased from Rs. 54,700 to Rs. 67,700 per candy, which is an increase of 25% during the last two months, while the yarn price has increased 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 said.
Tamil Nadu’s chief minister stated that after textiles, agriculture and apparel sectors are the largest employment generators in the state, especially giving jobs to women from rural and semi-urban backgrounds.
“In such a 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,” Vijay said in the letter.
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The chief minister also appealed to the Centre to intervene and decrease the import duty from the existing 11% to 0% for increasing the availability of raw materials.
“Hence, I request your intervention to remove the import duty on cotton from the existing 11% to 0% 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,” Vijay said.
