The Hindu Business Line : PM’s intervention sought on cotton, yarn price rise

Coimbatore, May 20 The Tamil Nadu Chief Minister, Mr M. Karunanidhi, has written to the Prime Minister, Dr Manmohan Singh, to draw his attention on the problems faced by the State’s textile industry.

He has sought the Central Government’s intervention to check cotton exports and cotton yarn prices by invoking the Textile Control Order. Mr Karunanidhi also called for extending the export incentives for home textiles on a short-term basis to ensure sustainability of textile industry.

Rupee appreciation

In a demi-official letter written to the Prime Minister today, he pointed out the textile industry in the State, with a foreign exchange earning potential of about Rs 11,000 crore, is faced with problems due to recent rupee appreciation that paralysed textile production leading to unemployment in rural areas.

On top of this, the yarn prices went up by 10-15 per cent and this led to major textile producers and exporters associations in the State calling a state-wide strike on May 16, he noted.

The State Government, on its part, took some initiatives such as removal of sales tax on hank yarn and offer of free power supply (up to 500 units bi-monthly for the weavers) for each unit at a cost of Rs 120 crore a year. These were done to facilitate the textile manufacturers make their products internationally competitive, he added.

Yarn prices

Mr Karunanidhi, who wanted the Centre to address the yarn price hike, asked the Union Government to make available the required yarn at reasonable price by invoking the textile control order and exercise control over cotton exports.

He also wanted export incentives for the home textile exports.

More Stories on : Textiles | Tamil Nadu

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