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Tamil Nadu is facing issues in the textile industry due to rising prices

Tamil Nadu Chief Minister MK Stalin, on 16 May, wrote a letter to Prime minister Narendra Modi seeking his help to solve the serious disruption being faced by the textile industry in the state.

The chief minister said that despite the union government withdrawing import duty levied on cotton, the price of cotton and Yan had been continuously rising.

“This uncertain situation is a widespread issue for the textile industry in Tamil Nadu. As a result, many spinning, weaving and garment unit face the damage of closing due to uncertainty in demands on their working capital, and the price is getting mismatched between the agreed price of supplies to the buyer and vis-a-vis the cost of production is being increased. As a result, garments manufacturing suffers from a huge loss, and an immense number of the units have already been closed.”

MK Stalin also mentioned three important steps that could control the price hike in the letter, which were caused by the disruptions. “Stock declaration for cotton and yarn should be made mandatory for all the spinning mills so that actual date on cotton and yarn availability will be there. The union government should issue suitable clarification that we were of import duty will be available for all contracts entered up to 30 September 2022 and extend the cash credit limit of Spinning Mills to purchase cotton up to 8 months in a year against the current 3 months”, he said in the letter to the PM.

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