Tamil Nadu Chief Minister Urges Prime Minister to Reconsider Cotton Import Duty to Protect Textile Industry and Employment

Tamil Nadu Chief Minister Requests PM Modi to Remove Import Duty on Cotton

Tamil Nadu Chief Minister Vijay wrote a letter to Prime Minister Narendra Modi on Thursday, requesting the removal of the import duty on cotton to address the crisis in the textile sector, the state's largest employer of rural women.

The textile sector in Tamil Nadu is facing a severe crisis due to the hike in cotton and yarn prices driven by production shortages and increased trading activity. The state is India's largest textile and apparel exporting state, employing lakhs of people, especially women primarily from rural and semi-urban backgrounds. The industry is facing a significant challenge due to the shortage of cotton production and increase in trading activity in the country.

According to the Chief Minister's letter, cotton prices have surged by 25% over the last two months, rising from Rs 54,700 to Rs 67,700 per candy. Yarn prices have also increased from Rs 301 to Rs 330 per kg, creating a significant raw material shortage for the industry. The Chief Minister noted that the price of cotton has increased from Rs. 54,700 to Rs. 67,700 per candy, while the yarn price has increased from Rs.301 to Rs.330 per kg.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The textile and apparel sector is the largest employment generator after agriculture, particularly for women from rural and semi-urban backgrounds. Permitting duty-free cotton imports will help the industry meet increasing export commitments and remain globally competitive. The Chief Minister urged the Centre to intervene and reduce the import duty from the existing 11% to 0% to ensure the availability of raw materials.

The Chief Minister further emphasized the significance of removing the import duty on cotton, stating that this measure will enable the textile and apparel industry to remain globally competitive, enhance exports, as well as protect jobs. He requested Prime Minister Modi to intervene and remove the import duty from the existing 11% to 0% to ensure the availability of raw material.