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TN CM Vijay Urges PM Modi to Scrap Cotton Import Duty Amid Textile Crisis

Tamil Nadu Chief Minister C. Joseph Vijay urged Prime Minister Narendra Modi to scrap the 11% import duty on cotton, warning of a severe crisis in the state's textile sector. Cotton prices have surged 25% in two months, from Rs 54,700 to Rs 67,700 per candy, while yarn prices also rose sharply. Vijay emphasized that duty-free imports are essential to stabilize raw material availability, protect jobs, and boost exports. The textile industry is one of India's largest job creators, particularly for women in rural areas.

Key Points: TN CM Urges PM Modi to Scrap Cotton Import Duty

  • Cotton prices surged 25% in two months
  • TN CM urges 0% import duty on cotton
  • Textile sector faces severe crisis from rising raw material costs
  • Industry provides employment to lakhs, especially women
2 min read

TN CM Vijay urges PM Modi to scrap cotton import duty amid textile sector crisis

Tamil Nadu CM C. Joseph Vijay urges PM Modi to remove 11% cotton import duty to tackle textile sector crisis due to rising raw material costs.

"The textile and apparel industry in Tamil Nadu is undergoing a severe crisis because of the unprecedented rise in cotton and yarn prices - C. Joseph Vijay"

Chennai, May 14

Tamil Nadu Chief Minister C. Joseph Vijay on Thursday urged Prime Minister Narendra Modi to immediately remove the 11 per cent import duty on cotton, warning that the state's textile and apparel sector was facing a severe crisis due to spiralling raw material costs.

In a letter addressed to the Prime Minister, Vijay said the sharp increase in cotton and yarn prices had put immense pressure on garment manufacturers and threatened the livelihoods of lakhs of workers dependent on the sector.

Describing Tamil Nadu as India's largest textile and apparel exporting state, the Chief Minister added that the industry provided direct and indirect employment to lakhs of people, particularly women from rural and semi-urban areas.

"The textile and apparel industry in Tamil Nadu is undergoing a severe crisis because of the unprecedented rise in cotton and yarn prices," Chief Minister Vijay said in the letter.

According to the Chief Minister, the price of cotton has increased from Rs 54,700 to Rs 67,700 per candy during the last two months, registering a steep rise of nearly 25 per cent.

Yarn prices, too, have gone up from Rs 301 per kg to Rs 330 per kg during the same period.

Chief Minister Vijay said the increase was primarily due to a shortage in domestic cotton production and heightened trading activity across the country, which had disrupted the supply chain and affected textile manufacturers.

He added that continued supply of raw materials could now be ensured only through imports, but the existing 11 per cent import duty on cotton was making imports expensive and unviable for the industry.

"Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive," the Chief Minister said.

Emphasising the importance of the textile sector in employment generation, Chief Minister Vijay noted that after agriculture, the textile and apparel industry remained one of the country's largest job creators.

"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," he said.

Chief Minister Vijay urged the Centre to reduce the cotton import duty from the existing 11 per cent to zero, saying the move would help stabilise raw material availability, protect jobs, boost exports, and enhance the global competitiveness of India's textile industry.

- IANS

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Reader Comments

V
Vikram M
As someone who works in the textile industry in Tiruppur, I can confirm this crisis is real. Our order books are full but we can't fulfill them because raw material costs have shot up by 25% in just two months. Many small units are on the verge of closure. The 11% duty removal will give us breathing room. Good move by CM Vijay.
A
Arjun K
I support the removal of import duty, but let's also think about our cotton farmers. If we import cheap cotton, won't our own farmers suffer? The government needs a balanced approach - maybe provide direct support to farmers while allowing duty-free imports for the industry. Employment in both sectors is important 🇮🇳
S
Siddharth J
Kudos to CM Vijay for raising this issue. The textile sector employs lakhs of women especially in rural areas. Removing import duty will directly benefit these workers. But why wait till crisis? The central government should have anticipated this cotton price hike earlier. Proactive planning needed! 🤔
R
Rohit P
This is a well-reasoned demand. The 25% price hike in cotton is no joke affecting the entire value chain. But I wonder - if we remove duty, will imported cotton be cheaper given global inflation and logistics costs? The government should also explore boosting domestic cotton production instead of dependency on imports.
K
Kavya N
As a small garment exporter from Erode, this move will save us! We lost three big orders last month because yarn prices made our quotes uncompetitive. CM Vijay is right - duty-free imports are needed urgently. But the central government must also work on long-term solutions like better cotton procurement and MSP for farmers. Win-win approach needed!

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