Tirupur Trade Body writes SOS to Textile Minister about Cotton Prices
04 January 2022, Mumbai:
The high price of cotton yarn is posing a significant issue for apparel makers, who have urged the government to intervene immediately.
Raja M. Shanmugham, President of the Tirupur Exporters' Association (TEA), has sent an SOS (Save Our Soul) to Union Textile Minister Piyush Goyal, urging him to help remove the cotton import duty in order to break the cartelization of vested interests in raising domestic cotton prices to unsustainable levels and to see a ban on cotton exports. Cotton is subject to a total import tariff of 11%.
Raja stated in his letter to the Ministry of Transportation that he is concerned that the increase in cotton prices will have a significant impact on garment exporting units, resulting in a loss of exports and jobs.
Furthermore, he warned, the MSMEs' clothing units' long-term viability will be highly questioned.
He also sent letters to the Textile Mills Associations, SIMA, TASMA, and the International Textile Federation, advising their members not to raise cotton yard prices disproportionately to increases in cotton prices, as this would have a negative impact on the value-added knitwear garment sector and make it difficult for both segments of the textile industry to achieve a win-win situation.
The high cost of cotton yarn, for example, is a big concern for garment producers, and despite the MoT's engagement and stringent directives to industry players, this problem has not been rectified.
Raja stated that he has been assisting farmers in obtaining a higher price for their cotton crop, but that dealers are now playing at the expense of garment manufacturing facilities' viability.
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