Business Daily from THE HINDU group of publications
Wednesday, Aug 27, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Wednesday, Aug 27, 2008 ePaper | Mobile/PDA Version | Audio |
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Agri-Biz & Commodities
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Cotton Industry & Economy - Textiles States - Tamil Nadu ‘Hike in cotton support price will sink textile sector’ The proposed increase of 38 per cent and 47 per cent would “totally erode the competitiveness and survival of the textile industry.” Our Bureau Coimbatore, Aug. 26 The cotton textile industry fears that any abnormal increase in the minimum support price (MSP) for cotton would be detrimental to the interests of not only the textile industry but also to the cotton growers as well. It appealed to the Central Government to adopt a pragmatic approach and fix a price that would be fair to both parties. In a statement here, Dr K.V. Srinivasan, Chairman, Southern India Mills’ Association (SIMA), said it was stated that the Central Government was planning to increase the MSP for medium staple cotton from Rs 1,800/quintal to Rs 2,500/quintal and in case of long staple cotton, the increase may be from Rs 2,030/quintal to Rs 3,000/quintal. The increase would be 38 per cent and 47 per cent respectively that would “totally erode the competitiveness and survival of the textile industry.” He said the industry, already reeling under the impact of various problems like increased cotton price and bank interest rates and acute power shortage, was hoping to recover in the next cotton season. But the proposed increase in MSP has come as a shock to the industry that has been grappling with heavy losses that was likely to worsen in the current fiscal. Dr Srinivasan said the proposed increase in MSP may look beneficial to the farmers in the short run but this would severely hit the cotton growers in the long run due to reduced off take in the domestic market. He requested the Central Government to reconsider the proposed hike and revise the rates in such a way to ensure the survival of both the farmers and the textile industry. More Stories on : Cotton | Textiles | Tamil Nadu
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