Tamil Nadu textile industry demands raw materials at competitive prices

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June 20, 2024 The availability of raw materials at cheap costs has been desired by Tamil Nadu’s textile and garment sector, which employs close to 60 lakh people.

“Raw material, labour, and power are the three major costs for textile units,” said S.K. Sundararaman, chairman of the Southern India Mills’ Association (SIMA).

After meeting with Giriraj Singh, the recently appointed Union Textile Minister, the SIMA chairman informed reporters that prices for Indian cotton this cotton season had stayed rather consistent. Still, the cost of cotton in India was high when compared to other countries.

This season, 323 lakh bales of Indian cotton were anticipated to be available, while roughly 12 lakh bales would be imported. Prices were impacted by the 11% import charge on cotton. Even though the Government recently eliminated the levy on Extra Long Staple (ELS) cotton, the duty should be eliminated entirely after India’s peak arrivals have ended.

In a similar vein, the Government has loosened the requirements of the Quality Control Order (QCO) for the import of polyester and viscose fibres used in the export of goods with added value. It ought to fully exempt these fibres from QCO. These two quick fixes would provide the sector with much-needed respite right away.

In order to provide farmers with higher returns on their cotton and the industry with raw materials at competitive pricing, the Government should also take action to increase cotton production, introduce high-quality seeds, and encourage high-density planting. He said that in order to enhance the cotton textile value chain, the industry was demanding this medium-term action.

Sundararaman said the Government of Tamil Nadu should allow the banking of wind energy generated and refrain from raising power prices further. According to him, the Association was in constant communication with the Tamil Nadu Government about this.

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