Nation Current Affairs 30 Nov 2021 Tamil Nadu CM writes ...

Tamil Nadu CM writes to Union Textiles Minister

DECCAN CHRONICLE. | DECCAN CHRONICLE
Published Nov 30, 2021, 8:18 am IST
Updated Nov 30, 2021, 8:34 am IST
The present crisis has led to mass cancellation of export orders and hardships in fulfilling long term export commitments, Stalin said. — Twitter
 The present crisis has led to mass cancellation of export orders and hardships in fulfilling long term export commitments, Stalin said. — Twitter

Chennai: Chief Minister M K Stalin urged Union Textiles Minister Piyush Goyal to make efforts to remove the 11% Import Duty on cotton, revamp the commercial terms and conditions prescribed by  the CCI for e-auction of cotton and extend 5% interest subvention to the spinning mills  towards procurement of cotton during peak season.

In a letter to the Union Minister on Monday, Stalin said apparel manufacturers were facing a grave situation of cotton and yarn price volatility having its impact on the prices of fabrics and garments.

‘I understand that one of the major reasons for the cotton price  volatility is due to the imposition of 5% Basic Customs Duty (BCD),  5% Agriculture Infrastructure Development Cess (AIDC) and  10% Social Welfare Cess imposed on these components in the Union  Budget 2021-22 which amounts to imposition of an overall import duty of 11%,’ he said. 

Another reason for spurt in cotton prices was the bulk discount offered by the Cotton Corporation of India (CCI) to the traders who  procured almost 70% of Minimum Support Price (MSP) cotton  auctioned by CCI at a lower rate during the cotton season due to  availability of 90 days free period and thereafter speculated the  market, Stalin said. 

‘If this situation is not reined in, a large number of apparel and  home textile units may soon become unviable resulting in closure  and consequent large scale unemployment and industrial unrest,’ he said. 

Stalin told the Union Minister that the textile  industry was the second largest employment provider in the State and  Tamil Nadu accounted for one third of the textile business in the  country.

‘The present crisis has led to mass cancellation of export orders and hardships in fulfilling long term export commitments,’ he said. 

Requesting Goyal to direct the concerned Ministries to intervene and take measures at the earliest to remedy the situation, protect the Textile Industry and prevent loss of jobs.

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