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Tamil Nadu CM Stalin Urges PM Modi to Revive Textile Sector Amidst Crisis

Plea to Reduce Cotton Costs to Bolster Spinning Mills (Stalin)

Temporary Ban on Cotton Waste Exports to Stabilize Prices

Financial Support Sought for Textile Sector to Mitigate Challenges

Chennai, 19 July (City Times): The textile sector in Tamil Nadu is facing a formidable crisis, and Chief Minister M K Stalin has reached out to Prime Minister Narendra Modi with an urgent appeal to address the escalating price hike and rescue the industry from distress. In a recent letter to the Prime Minister, Stalin highlighted the pressing need for immediate intervention to combat rising cotton costs and breathe life back into the spinning mills that are essential contributors to the state’s industrial economy.

Reviving the Spinning Mills: A Call for Reducing Cotton Costs

The textile industry in Tamil Nadu, comprising a significant number of spinning mills and providing employment to over 15 lakh workers, has encountered a perfect storm of challenges. Chief Minister Stalin’s primary request is the withdrawal of the 11% import duty on cotton, a crucial factor contributing to the price disparity between India and its global competitors. Reducing cotton costs would enable the spinning mills to regain their competitiveness, uplifting the textile sector and restoring its pivotal role in the state’s economic landscape.

Proposed Temporary Ban on Cotton Waste Exports

To further stabilize cotton prices and support open-end spinners grappling with shortages, Chief Minister Stalin proposes a temporary ban on the export of cotton waste from India. Such a measure would alleviate the shortage faced by domestic spinners and create a favorable environment for the revival of the spinning mills. By bolstering the supply of raw material and fostering a level playing field, this initiative seeks to enhance the industry’s prospects and restore its global positioning.

Seeking Financial Support for Textile Sector

In addition to measures targeting cotton costs, Chief Minister Stalin calls for robust financial support to strengthen the textile sector. The Chief Minister urges the Centre to provide assistance to micro, small, and medium enterprises in the textile industry through the Emergency Credit Line Guarantee Scheme (ECLGS). Extending the moratorium for one more year and restructuring existing loans into long-term loans are among the proposed measures. Fresh loans with reduced banking interest rates under ECLGS will inject much-needed liquidity, helping the spinning mills resume operations and navigate the challenging economic environment.

The Textile Sector Crisis: A Complex Confluence of Challenges

The textile sector, a critical pillar of Tamil Nadu’s economy, is currently grappling with multiple challenges. The steep rise in cotton prices, driven by international market dynamics, has increased operational costs for spinning mills and affected their competitiveness. Additionally, the prevailing high bank interest rates, coupled with weak domestic and international demand, have exacerbated the situation, leading to a severe crisis.

As a result, the spinning mills association took the drastic step of halting production from July 15. The crisis has had far-reaching implications, impacting the livelihoods of thousands of workers and casting a shadow over the future of the entire textile industry.

A Call for Immediate Action

Chief Minister Stalin’s appeal to Prime Minister Modi underscores the urgency of the situation. The textile sector, a significant contributor to Tamil Nadu’s growth and prosperity, requires decisive action to address the complex web of challenges it faces. With the potential to revitalize the spinning mills and rejuvenate employment opportunities, the proposed measures hold the key to the industry’s resurgence. (stalin)

The Path Forward

As the government considers the plea for reducing cotton costs, imposing a temporary ban on cotton waste exports, and providing financial support, stakeholders in the textile sector await a swift response. The successful implementation of these measures can pave the way for the sector’s recovery and reignite its engine of growth.

In this critical juncture, the collaboration between the central and state governments is vital to chart the path forward for Tamil Nadu’s textile sector. By leveraging innovation, technology, and sustainable practices, the industry can emerge stronger and more resilient, reinforcing its position as a leader in the global textile market. (stalin)

In the coming days, the eyes of the spinning mills, the workers, and the entire textile community will be on the response from the central government. As the state government and industry stakeholders continue to rally for support, the future of Tamil Nadu’s textile sector remains hopeful, anticipating a resurgence that will fuel progress and prosperity for the state and its people.

Click to Read this news in Hindi.

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