Indian Textile Mills Association asks the government to control cotton exports
The Indian Textile Mills Association requires the federal government to control the export of cotton, because it only needs to control the export of cotton to resolve the crisis they are currently facing. In a memo, the president of the association, A.R. Chinnaiyan, pointed out that there are approximately 2,000 large and small textile companies in Tamil Nadu, most of which are in rural areas. These companies have 2,000-5,000 hand-looms and power looms, employing hundreds of thousands of male and female migrant workers. He regrets that these companies have faced severe and unprecedented crises in the past six months. Many companies suffered heavy losses, and many companies were forced to suspend production. The main reason for the current predicament is the circling increase in cotton prices. Due to the fierce competition between China and Pakistan, the demand for Indian yarn in the international market has fallen. He said that our main competitors in world trade have created an unprecedented crisis for us. If the Indian textile industry is to survive this catastrophe, it must pay attention to current problems immediately. He called on the central government to formulate effective support policies to help the Indian textile industry improve its competitiveness. He regrets that the government encourages India to export large amounts of cotton to competing countries, which not only reduces the competitiveness of the local textile trade and textile industry, but also prevents their development. The circling rise in cotton prices has weakened the strength of the local textile industry. But he is convinced that by ensuring the interests of cotton farmers with an appropriate price mechanism, after meeting the needs of local industries, controlling the export of surplus cotton can resolve the current crisis. In addition, the hoarding of cotton by cotton merchants and middlemen must be strictly controlled. He said that the price of cotton yarn this year has dropped significantly compared with last year. This can be solved by encouraging the export of cloth and fabrics produced by hand looms and power looms. Expanding the export of cloth and fabrics will stabilize yarn prices. At the same time, it is also conducive to the development of spinning enterprises, creating more employment opportunities, and hiring long-term workers, especially workers in rural areas. He said that the abolition of the central tax (3%) on the domestic cotton trade will help lower the price of yarn. But raising the bank interest from 10% to 15% increases the cost of yarn production. He asked the federal government to encourage cotton scientists and researchers to identify and produce insect-resistant and high-yielding long-staple cotton varieties (50 quintals per acre) to increase the income of cotton farmers and promote the development of the textile industry.