Chennai
Tamil Nadu Chief Minister MK Stalin on Monday sought the immediate intervention of Prime Minister Narendra Modi to solve the serious disruptions faced by the textile industry in the state due to rising cotton and yarn prices.
In a letter to the PM, Stalin stated that despite the Union government withdrawing import duty levied on cotton, the prices of cotton and yarn have been continuously on the rise.
The Chief Minister said he had brought the issue to the notice of Union Finance Minister Nirmala Seethraman and Textile, Commerce and Industry Minister Piyush Goyal.
“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-avis the cost of production,” he said.
As a result, the manufacturers of garments are suffering huge losses and many MSME units have already closed their operations, the Chief Minister said.
He further said that this has resulted in massive job losses in a sector that is traditionally an employment generator and the situation has also had an adverse impact on handloom weavers in the cooperative sector as they are not able to procure yarn and supply the same to their members for the weaving of cloth.
“The growing discontent in the industry and among the weavers is alarming. I, therefore, request you to take serious note of the situation and initiate the following steps to rein in the price rise and consequent disruptions in the textile value chain,” Stalin said.
