Stalin pens to Modi about cotton prices in Tamil Nadu
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Chennai : To combat the "serious disruptions" in the textile industry in Tamil Nadu, Chief Minister MK Stalin on Monday urged the Centre to take a number of steps, including making mandatory for spinning mills and declaring cotton and yarn stocks.
Despite the Centre's announcement that the import duty on cotton would be removed, the situation has not improved, and cotton and yarn prices have continued to rise, Stalin wrote to Prime Minister Narendra Modi. "This precarious situation has far-reaching implications for Tamil Nadu's textile industry."
"A large number of spinning, weaving and garment units are at risk of closure due to unsustainable demands on their working capital and a price mismatch between the agreed price of supply to the buyer and the cost of production," he wrote in the letter, which was released by the State Government on Monday.
He described the growing discontent in the industry and among weavers as "alarming" and called for a series of actions to address the situation. "As an immediate measure, all spinning mills should make stock declarations for cotton and yarn mandatory so that ginners and cotton traders can get accurate data on cotton and yarn availability," he told Modi. He also wanted the spinning mills' cash credit limit for purchasing cotton to be increased from three to eight months per year.