Tamil Nadu Chief Minister M.K. Stalin on Wednesday appealed to Prime Minister Narendra Modi to withdraw the 11% import duty on cotton, restructure the Emergency Credit Line Guarantee Scheme (ECLGS), and temporarily ban the export of waste cotton to help the spinning industry, which is struggling due to a steep increase in cotton prices.
In a letter to the Prime Minister, Mr. Stalin said the increase in the price of cotton and its impact on the cost of yarn and fabrics has affected the spinning sector in Tamil Nadu which has around 1,500 mills, and 15 lakh employees.
The CM pointed out that the spinning mills’ association in the State had declared a stoppage in production since July 15 due to the crisis the sector was facing due to high cotton prices, increased operational costs, increases in bank interest rates and poor demand in domestic and international markets.
