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US ban on Chinese cotton affects Tamil Nadu industries

Nov 26, 2021
US ban on Chinese cotton affects Tamil Nadu industries

Small-time garment factory owners and their employees held a protest in Tiruppur (Tamil Nadu) condemning the skyrocketing cotton yarn prices and the indifference of the union government to contain the situation.

The price rise is a direct result of the ban imposed by the United States of America on cotton produced in China, and the pro-US stance of India.

There has been an over 50% increase in cotton prices since the beginning of 2021, and this has steadily slumped the famous readymade garment industry belt in the Tiruppur district.

Garment manufacturers in Tirrupur and the neighbouring districts are worried that this situation could wipe out the entire small-scale garment manufacturing belt in Western Tamil Nadu.

A third of the world’s textiles and clothing comes from China, and 87% of China’s total cotton output comes from the single province of Xinjiang.

The US has imposed a ban on the purchase of raw cotton and cotton yarn from China, and other developed nations have extended their support. This has created a vacuum for cotton in international trade and the yarn prices have shot up.

An outright ban of cotton from China has created a massive demand for cotton produced in India at the international market and has jacked up the price of cotton lint produced in India. Cotton produced in India is now exported outside the country and hoarded by big manufacturers, and has left the local manufacturers to suffer.

Piyush Goyal, Union Minister of Textiles and Commerce & Industry who spoke to textile industry stakeholders at a meeting, has asked the industry leaders to not force the Government to intervene in the price rise. He has urged the industry to resolve the issue over high cotton and yarn prices through a spirit of “collaboration rather than competition”.

 Image Source: Google Images

Source: News Click

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