The Chief Minister of Tamil Nadu, Vijay, has reached out to Prime Minister Narendra Modi, requesting the elimination of the 11% import duty on cotton. In his correspondence, dated May 14, he highlighted the challenges currently facing the state’s textile sector, the primary employer of rural women in the region. Vijay conveyed that the industry is experiencing a severe crisis, largely due to rising cotton and yarn prices.

Impact on Textile Sector and Employment

In his letter, Vijay noted that Tamil Nadu is India’s largest exporter of textiles and apparel, with millions reliant on this sector for both direct and indirect employment. He pointed out that women from rural and semi-urban communities are particularly affected by the turmoil in the industry. The Chief Minister linked the current difficulties to a significant increase in cotton and yarn prices, which he claims stem from both production shortages and higher trading activities.

According to the letter, cotton prices have reportedly increased by 25% in the past two months, escalating from Rs 54,700 to Rs 67,700 per candy. Yarn prices have similarly risen from Rs 301 to Rs 330 per kilogram. This surge has resulted in a considerable shortage of raw materials for local textile manufacturers.

Vijay emphasised the urgent need for duty-free imports to ensure the consistent supply of cotton, suggesting that the removal of the import duty would help the industry meet its growing export commitments and maintain competitiveness in the global market. Besides agriculture, the textile sector is noted as one of the largest job creators in Tamil Nadu, strengthening the call for government action to protect employment opportunities.

Call for Government Intervention

The Chief Minister reiterated the importance of the textile and apparel sector for Tamil Nadu’s economy, highlighting its crucial role in generating employment, particularly for women from disadvantaged backgrounds. He contended that a significant responsibility lies with the Government to safeguard the livelihoods of millions and ensure the sustainability of the textile value chain in the state.

In his appeal, Vijay specifically requested the Government’s intervention to reduce the import duty from the current 11% to zero. He argued that this change would facilitate greater availability of raw materials for the textile industry, ultimately benefiting exports and job preservation. The Chief Minister’s letter reflects a growing concern over the future of the textile sector amid fluctuating raw material prices.

As the textile landscape continues to evolve amid various challenges, the Chief Minister’s advocacy showcases the pressing need for policy adjustments to fortify the industry. The removal of the duty could potentially alleviate the burden on local manufacturers and help restore stability in the workforce reliant on this vital sector.

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