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Tamil Nadu Prime Minister demands elimination of cotton import tariffs

Prime Minister Tamil Nadu MK Stalin recently imported 11% of cotton into the Government of India, citing a request from manufacturers regarding “the serious situation of cotton and yarn price fluctuations and its impact on fabric and garment prices”. I requested that the tax be abolished. Expand 5% interest restraint to spinning mills for procurement for cotton electronic auctions.

In a letter to Union Textile Minister Piyush Goyal, Stalin sought measures to address the situation, protect the textile industry and prevent unemployment.

“As you know, the textile industry is the second largest job provider in the state, and Tamil Nadu occupies one-third of the country’s textile business. Due to the current crisis, mass cancellation of export orders There are long-term difficulties in fulfillment. Long-term export commitment. “

Tamil Nadu’s Prime Minister MK Stalin quoted a manufacturer’s request for “the serious situation of cotton and yarn price fluctuations and their impact on fabric and garment prices”, with an import tax of 11% on cotton. Requested conditions for abolition and reprocessing of cotton. Hold an electronic auction and extend a 5% interest subvention to the spinning mill for procurement.

If this situation is not addressed, many apparel and textile units can quickly become inoperable, resulting in closure and consequent massive unemployment and industrial instability, Stalin said. It was reported that it was stated by.

One of the main reasons for fluctuations in cotton prices is the 2021-22 budget, which imposes 5% basic tariffs (BCD), 5% agricultural infrastructure development and 10% social welfare services.

“Another reason for the soaring cotton prices is provided by the Cotton Corporation of India (CCI) to traders who procure almost 70% of the lowest support price (MSP) cotton auctioned by CCI during the cotton season at a low price. It’s a one-time discount because a 90-day free period is available and then the market is guessed. “

Stalin demanded that the center remove the 11 percent cotton import tax to avoid further speculation in the coming months. He wanted a “renewal” of the terms and conditions of commerce specified by the CCI for cotton electronic auctions by reducing the minimum sustainable lot size for MSME to 500 veils.

“In addition, yarn manufacturers may prioritize cotton procurement over traders. Expand 5% interest subsidies to spinning mills for peak season (December-March) cotton procurement.” He wrote.

Fiber2Fashion News Desk (DS)



Tamil Nadu Prime Minister demands elimination of cotton import tariffs

Source link Tamil Nadu Prime Minister demands elimination of cotton import tariffs

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