Chennai, July 19 (SocialNews.XYZ) Tamil Nadu Chief Minister M.K. Stalin on Wednesday requested Prime Minister Narendra Modi to withdraw the 11 per cent import duty on cotton to help the spinning industry that was struggling due to a steep increase in cotton prices.
He also urged the Prime Minister to restructure the Emergency Credit Line Guarantee Scheme (ECLGS) and also to temporarily ban the export of waste cotton.
The Chief Minister said that the steep increase in cotton prices and its impact on the cost of yarn and fabrics has affected the spinning industry in the state. Stalin said that there were 15 lakh employees and 1500 spinning mills in Tamil Nadu.
He also said that the spinning mill association in the state had declared a stoppage in production since July 15 due to the high cost of cotton.
The Chief Minister said that the increased operational costs, increased bank interest rates and reduced demand in national and international markets were also starring at the industry.
He called upon the Union government to extend the moratorium on the repayment of short-term loans provided under the ECLGS for one more year. It may be noted that the repayment of ECLGS for micro, small, and medium enterprises (MSME) has commenced now, after the Covid-19 moratorium on all loans.
The Chief Minister appealed to the Union government to further restructure the existing loans to six-year term loans and to provide fresh loans at reduced interest rates.
He also wanted the Prime Minister to extend the time of cash credit limits of spinning mills for purchasing cotton from three months to eight months.
The Chief Minister also requested Prime Minister Narendra Modi to consider a temporary ban on the export of waste cotton to address its shortage being faced by open-end spinners. He said that there was significant price difference between India and its international competitors was the 11% import duty on cotton and requested the Prime Minister to withdraw this.
Source: IANS
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