A solution to the abnormal price hike and scarcity of cotton in the country is expected to arise after the meeting.
Coimbatore: The textile industry stands second in generating more employment throughout the nation, next only to agriculture. There are 52 million spindles in the spinning sector, 25.5 lakh power looms and 22.5 lakh handlooms functioning across the country.
Every year, 350 lakh bales of cotton will be produced in the country in which 300 lakh bales will be used inside our country and 50 lakh bales will be exported. Abnormal Price hike of cotton and scarcity has become a cause of headache to textile industrialists. The cotton price has increased from Rs.44,500 per candy in February 2021 when the 11 percent import duty was levied on cotton to Rs.90,000 per candy now. The steep increase in cotton price and its impact on prices of yarns and fabrics is severely impacting the potential growth of the cotton textile value chain.
T Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI), Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) and Raja M Shanmugam, President, Tirupur Exporters’ Association (TEA) opined that the abnormal price hike of cotton and scarcity has pushed the industries of the entire textile value chain to crisis. It is feared that the industry might face cotton shortage during August to October resulting in industrial unrest. Hence, the office bearers of the Textile Industry Associations have decided to jointly meet the Central Textile Minister on April 4.
"The Central Government continues to give more importance to textile industry growth. Hence, we are confident that after our meeting with the Central Textile Minister, there will be a solution to the abnormal price hike and scarcity of cotton in the country," assured the confident office bearers.
Every year, 350 lakh bales of cotton will be produced in the country in which 300 lakh bales will be used inside our country and 50 lakh bales will be exported. Abnormal Price hike of cotton and scarcity has become a cause of headache to textile industrialists. The cotton price has increased from Rs.44,500 per candy in February 2021 when the 11 percent import duty was levied on cotton to Rs.90,000 per candy now. The steep increase in cotton price and its impact on prices of yarns and fabrics is severely impacting the potential growth of the cotton textile value chain.
T Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI), Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) and Raja M Shanmugam, President, Tirupur Exporters’ Association (TEA) opined that the abnormal price hike of cotton and scarcity has pushed the industries of the entire textile value chain to crisis. It is feared that the industry might face cotton shortage during August to October resulting in industrial unrest. Hence, the office bearers of the Textile Industry Associations have decided to jointly meet the Central Textile Minister on April 4.
"The Central Government continues to give more importance to textile industry growth. Hence, we are confident that after our meeting with the Central Textile Minister, there will be a solution to the abnormal price hike and scarcity of cotton in the country," assured the confident office bearers.