Cotton prices: Tamil Nadu Chief Minister Stalin has written a letter to the Prime Minister regarding cotton prices

Identifying the “serious hurdles” facing the textile industry in Tamil Nadu, Chief Minister MK Stalin urged the Center to take several steps to curb inflation, including making it mandatory for spinning mills and announcing stocks of cotton and yarn. Despite the Centre’s announcement of the withdrawal of import duties on cotton, the situation has not improved and cotton and yarn prices continue to rise, Stalin said in a letter to Prime Minister Narendra Modi.

“This precarious situation has had a profound effect on the textile industry in Tamil Nadu. A large number of spinning, weaving and garment units are in danger of closing down due to volatile demand for their working capital and price discrepancy between agreed price to supply to buyers,” the state government said on Monday. He said in the letter.

The growing discontent between the industry and weavers was ‘worrying’, he said, and tried a few steps to handle the situation.

“As an immediate measure, cotton and yarn stock declarations may be made mandatory for all spinning mills so that ginners and cotton traders can get real information on the availability of cotton and yarn,” he told Modi.

He also wanted to increase the cash loan limit of spinning mills for buying cotton to eight months a year as against the current three.

“Similarly, the margin money demanded by banks at 25 per cent of the purchase price may be reduced to 10 per cent as banks are calculating the purchase stock price at a lower rate than the actual purchase / market rate in the market,” he added.