Chennai (Tamil Nadu): Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi urging him to take steps including making it mandatory for spinning mills to declare their cotton and yarn stocks to curb rising cotton prices. Stalin argued that even as the Centre has withdrawn import duty on cotton, the situation is yet to improve. He further stated that the textile industry was facing " serious disruptions" in Tamil Nadu.
"This precarious situation has widespread ramifications for the textile industry in Tamil Nadu. A large number of spinning, weaving and garment units face the danger of closure due to unsustainable demands on their working capital and price mismatch between the agreed price of supply to the buyer vis-a-vis the cost of production," he stated in the letter. The letter was released by the State Government on Monday.
The Chief Minister further stated that the discontent in the textile industry and among the weavers has reached an "alarming" level and urged him to take necessary steps to resolve the issue. "As an immediate measure, stock declaration for cotton and yarn may be made mandatory for all spinning mills so that ginners and cotton traders can obtain actual data on cotton and yarn availability," stated Stalin.
He urged the Prime Minister to extend the cash credit limit of the spinning mills to purchase cotton up to 8 months in a year, as against the existing three. "Similarly, margin money sought by the banks at 25 per cent of purchase value may be reduced to 10 per cent since banks are calculating the purchase stock value at lesser rates than the actual purchase/market rates in the market," added Stalin.
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