One crore people belonging to 25 lakh families living in Tamil Nadu are dependent on the wholesale textile manufacturing industries such as banyan, power loom, and handloom.
Tirupur: Marxist Communist Party (CPIM) is set to hold a hunger strike on May the 17th, urging the US government to take all necessary measures to curb the rise in yarn prices, which seems to be greatly destabilizing the textile industry.
K. Kamaraj, a state committee member of the Marxist Communist Party, spoke to reporters in Tirupur on Monday. He said: “The textile industry is the second largest employer sector in India after agriculture. The industry is currently in the throes of a major crisis. One crore people belonging to 25 lakh families living in Tamil Nadu are dependent on the wholesale textile manufacturing industries such as banyan, power loom, and handloom.
The prices of cotton and yarn have risen sharply and that seems to be the source of a major crisis in the industry. The Tirupur Exporters Association on Sunday convened a meeting of 5 parliamentarians from the region and held a consultative meeting with the participation of almost all of the major players in the textile industry. The meeting called for a two-day full-scale strike on May 16 and 17, and requested everyone in the textile industry to join.
Until 2020, the price of a sugarcane ranged from Rs 35,000 to Rs 45,000 depending on the variety. But now the price of a sugarcane has gone up from Rs 95,000 to Rs 1.5 lakh. As a result, the price of yarn has gone up. The main reason behind this price increase is the position taken by the United States government.
The Cotton Corporation of India (CCI) used to procure cotton from farmers at affordable prices and supply it to the industry at reasonable prices. But as of 2021, the Cotton Corporation of India has been barred from making purchases from farmers by the Union Government. As a result, multinational corporates and Indian bigwigs have created artificial shortages and demand by buying and hoarding cotton from online trading companies.
That is one of the key reasons behind the price hike of cotton. In 2020, the number 40 'yarn sold for Rs. 270 per kg, which has now almost doubled to Rs. 470 per kg. This has led to a major crisis in the banyan industry.
When ordering knitwear from abroad, they set the price of the garment according to the prevailing yarn price and receive it. Small, micro, and medium manufacturers are being pushed into crisis because they are not able to order those foreign knitwears because the price of yarn rises sharply after receiving the order.
The Union Government should, therefore, purchase cotton from farmers through the Cotton Corporation of India at affordable prices, and ensure that cotton is available to the panchayats throughout the year at reasonable prices without shortage. The rest of the cotton can be exported to meet domestic demand. India produces 3.60 lakh bales of cotton per annum. Domestic demand is only 2.90 lakh bales.
Therefore, online trade causing artificial shortage and demand for cotton should be banned. The export of cotton and yarn should be banned. Essential materials include cotton and yarn in the frame. Spinning mills should drop the Rs 40 per kg price hike in May.
Also, the yarn production of Tamil Nadu in India is around 40 percent. The annual demand for cotton here is roughly 116 lakh bales. But the cotton production in Tamil Nadu is only 6 lakh bales. Therefore, to protect the livelihoods of over 1 crore people belonging to 25 lakh families in Tamil Nadu, the state government should set up a separate body called the Tamil Nadu Cotton Corporation to procure cotton. The government has to provide a bank loan to establish the same.
In support of these demands, the Marxist Communist Party (CPIM) has decided to hold a hunger strike in front of the Tirupur Corporation office for the span of a day, from morning to evening on May 17, with over a thousand participants. We also call on the executives of the manufacturers' associations to join the demonstration and speak out.
The Marxist Party also extends support to the two-day strike on May 16 and 17 organized by all textile manufacturers' organizations.” said K. Kamaraj. The District Secretary S. Muthukkannan, and the District Executive Committee Members C. Murthy and K. Rangarajan were present during the interview.