Chief Minister MK Stalin today wrote a letter to Prime Minister Narendra Modi seeking his immediate intervention to adddress thet troubles faced by the textile industry in the State.
In a copy of the letter released to the press, the Chief Minister said, ‘thought the Centre has withdrawn import duty levied on cotton, the prices of cotton and yarn have been continuously on the rise’.
This precarious situation has widespread ramifications for the textile industry in Tamilnadu. 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, he said. He also sought the Prime Minister to take 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.