SIMA urges Government to give thrust for strengthening cotton textile value chain

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September 20, 2024 The chairman of the Southern India Mills Association (SIMA), S.K. Sundaraman, stated that concerns regarding raw materials utilised by the textile sector have to be addressed by the central government.

The Government should launch a Technology Mission on Cotton (TMC) to boost cotton output and productivity and solve the inverted duty structure for manufactured fibre (MMF), according to a news statement issued by the Association following its annual conference.

Sundararaman said that the Government has already announced special packages from the previous cotton season to stimulate indigenous seed technology for high-density planting and ELS cotton, as well as to improve agronomy practices, in advance of the introduction of TMC 2.0. He continued by saying that the Phase II project was already underway and that the Phase I project had shown to be successful, resulting in a 30 per cent to 60 per cent boost in production.

The sector was reassured by Union Finance Minister Nirmala Sitharaman during a recent meeting in Coimbatore that action will be made to resolve the GST issue with the MMF value chain’s inverted tariff structure. Even though it was addressed in 2022, he stated that resistance from a portion of the industry caused it to be reversed.

He expressed his gratitude to the Minister for allocating time for the submission of the memorandum and for their in-depth discussions on a range of policy initiatives aimed at improving the textile and apparel industry in India’s global competitiveness. Of particular note is the exemption of import duties on all varieties of cotton from April to October during the off-season, which creates a win-win situation for farmers and the industry while also preventing price speculation by the trade through the adoption of import parity pricing.

At the annual meeting, Sundararaman, the managing director of Shiva Texyarn, was re-elected as SIMA’s chairman. The Association’s 2024–25 vice chairman, S. Krishnakumar, was re-elected, while the association’s deputy chairman, Durai Palanisamy, executive director of Pallava Textiles, Erode, was re-elected as well.

The SIMA Cotton Development & Research Association (SIMA CD & RA) chose Mr. Sundararaman as its chairman, Mr. Palanisamy as its deputy chairman, and Mr. Krishnakumar as its vice chairman at its annual meeting on Tuesday.

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