“Tamil Nadu is India’s largest textile and apparel exporting state. Lakhs of people are dependent on this sector for both direct and indirect employment, especially women primarily from rural and semi-urban backgrounds,” he pointed out in his letter.
“Of late, the industry is facing severe crisis due to increase in cotton price and consequently yarn prices. I understand this is caused primarily due to shortage of cotton production and increase in trading activity in the country,” Vijay said.
The price of cotton had increased from Rs. 54,700 to Rs.67,700 per candy, which is an increase of 25 per cent during the last two months. The yarn price has increased from Rs.301 to Rs.330 per kg, he noted.
In this situation, the continued supply of raw material could be ensured only through imports, Vijay pointed out.
Permitting duty-free cotton imports would help the industry meet increasing export commitments and remain globally competitive. After agriculture, the textile and apparel sector was one of the largest employment-generating sectors, he said.
