Chennai, May 15: Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to immediately eliminate the 11% import duty on cotton. He warned that rising raw material costs are putting the state’s textile and apparel sector in a severe crisis.
In a letter addressed to PM Modi, CM Vijay stated that the significant increase in cotton and yarn prices has placed immense pressure on clothing manufacturers, jeopardizing the livelihoods of millions of workers dependent on this sector.
Highlighting that Tamil Nadu is India’s largest exporter of textiles and garments, the Chief Minister noted that this industry provides direct and indirect employment to millions.
CM Vijay emphasized that the textile and apparel industry in Tamil Nadu is facing an unprecedented crisis due to soaring prices of cotton and yarn.
He explained that this price surge is primarily due to a decline in domestic cotton production and increased commercial activities across the country, which have disrupted the supply chain and adversely affected textile manufacturers.
Furthermore, he pointed out that the continuous supply of raw materials can now only be ensured through imports. However, the current 11% import duty on cotton makes imports costly and unprofitable for the industry.
According to the Chief Minister, cotton prices have surged from ₹54,700 to ₹67,700 per candy over the past two months, marking a staggering increase of approximately 25%. During the same period, yarn prices have also risen from ₹301 per kilogram to ₹330 per kilogram.
CM Vijay reiterated that this price hike is mainly due to reduced domestic cotton production and increased trade activities nationwide, which have disrupted the supply chain and impacted textile manufacturers.
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P.S.K/ABM
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