Tirupur Exporters’ Association (TEA) accused middle-men and traders of creating a havoc by jacking up the price of cotton during the cotton arrival season.
Coimbatore
Tirupur Exporters’ Association (TEA) has accused middle-men and traders of creating a havoc by jacking up the price of cotton during the cotton arrival season.
TEA is seeking immediate intervention of Union Textile Minister Piyush Goyal to protect the knitwear garment sector. In a letter to Goyal a copy of which was made available, the TEA said the 11 per cent total import duty existing on cotton has been the reason for the cartelisation of players to increase the domestic cotton prices and make an abnormal profit.
Raja M Shanmugham, president, TEA, said that, their apprehension is that, the price hike of cotton will heavily impact the garment- exporting units and lead to loss of exports, including employment. Moreover, the sustainability of the MSME garment units will also be doubtful.
He added that their main requisition is for removal of duty imposed on cotton immediately and also to protect the garment sector. Necessary steps have to be taken to break the cartelisation and also see the possibility of imposing ban on cotton exports.
Thanking the Minister for addressing the requirements of the textile industry one by one and the positive measures have helped the industry enhance the performance in terms of growth and exports, TEA said the industry always supported the cotton-producing farmers getting better price for their produce as that would encourage them to continue to raise the crop and take the right scientific techniques to increase productivity.
Source: The Economic Times
Image Source: Google Images
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