The Hindu Business Line : Buddhadeb urged to take up raw cotton export issue with PM

Hard times
The textile industry had started facing difficulties with 15 per cent appreciation in the rupee against dollar and due to 10 per cent drop in the prices of the finished products.
Raw cotton prices have also increased by 20 per cent.
In spite of the high input costs, the textile industry is able to compete globally because of the home grown cotton.

Our Bureau

Coimbatore, April 2 The textile industry in the South has petitioned the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, to take up with the Prime Minister the need to streamline raw cotton exports from the country to ensure that good quality home grown cotton is made available to the domestic textile industry.

It also said that the cotton exported should be done out of surplus available and that it should be canalised through State Corporations like the Cotton Corporation of India or through the textile councils to prevent speculative trade taking advantage of the situation.

The regional textile body — the Southern India Mills Association (SIMA) — lamented that the textile industry had started facing difficulties with 15 per cent appreciation in the rupee against dollar and due to 10 per cent drop in the prices of the finished products.

The raw cotton prices have also increased by 20 per cent. In spite of the high input costs, the textile industry is able to compete globally because of the home grown cotton.

But if the present trend of cotton hoarding/speculative trading by multinational traders continues, the survival of the domestic textile industry would be at stake, SIMA pointed out.

It also wanted Mr Bhattacharjee to impress upon the Centre on the need to withdraw the Central sales tax and value-added tax on cotton and the one per cent export incentive offered to cotton exports.

Among its other suggestions, the SIMA also wanted the State and local taxes amounting to six per cent to be refunded on all exports of textile and clothing products and alternatively, the Centre could introduce duty-free scrips at suitable rates to compensate for the State levies.

More Stories on : Cotton | Textiles | Tamil Nadu

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