India News | Tamil Nadu CM Vijay Writes to PM Modi, Urges Scrapping 11% Import Duty on Cotton to Safeguard Textile Sector, Jobs
Get latest articles and stories on India at LatestLY. Tamil Nadu Chief Minister Vijay wrote letter to Prime Minister Narendra Modi on Thursday, to remove the import duty on cotton.
Chennai (Tamil Nadu) [India], May 14 (ANI): Tamil Nadu Chief Minister Vijay wrote a letter to Prime Minister Narendra Modi on Thursday, to remove the import duty on cotton.
In the letter, the Chief Minister expressed concern over the crisis in the textile sector, the state's largest employer of rural women. Vijay attributed the "severe crisis" to the hike in cotton & yarn prices driven by production shortages & increased trading activity.
"Tamil Nadu is India's largest textile and apparel exporting state. Lakhs of people are dependent on this sector for both direct and indirect employment. especially women primarily from rural and semi-urban backgrounds. Of late, the industry is facing a severe crisis due to an increase in cotton prices and, consequently, yarn prices. I understand this is caused primarily due to the shortage of cotton production and increase in trading activity in the country," he wrote in a letter.
The newly-elected CM pointed out that cotton prices have surged by 25% over the last two months, rising from Rs 54,700 to Rs 67,700 per candy. He further noted that yarn prices have also increased from Rs 301 to Rs 330 per kg, creating a significant raw material shortage for the industry.
"The price of cotton has increased from Rs. 54,700 to Rs. 67,700 per candy, which is an increase of 25% during the last two months, while the yarn price has increased from Rs.301 to Rs.330 per kg. In this situation, the continued supply of raw material can be ensured only through imports. However, there is an import duty of 11% on cotton," he added.
The Chief Minister noted that after agriculture, the textile and apparel sector is the largest employment generator, particularly for women from rural and semi-urban backgrounds.
"In such a situation, permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive. After agriculture, the textile and apparel sector is one of the largest employment generating sector. 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," as stated in the letter.
The CM further urged the Centre to intervene and reduce the import duty from the existing 11% to 0% to ensure the availability of raw materials.
"Hence, I request your intervention to remove the import duty on cotton from the existing 11% to 0% to ensure the availability of raw material. This measure will enable the textile and apparel industry to remain globally competitive, enhance exports as well as protect jobs," he said. (ANI)
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