Speculation in general and hoarding by some traders have contributed to the abnormal rise in the price of cotton and yarn, Union Textiles Minister Dayanidhi Maran has said.

Speaking after inaugurating the Karur Textile Park at Thalapatti-Puthambur near here on the Karur-Madurai Highway on Saturday, Mr. Maran pointed out that the textile industry has been rather rattled by the steep rise in the price of cotton and yarn in the past period. Fluctuation in the price of cotton and yarn had been brought about by only speculation in general and hoarding by some avaricious traders and not due to poor arrivals or any other factor affecting cotton, the Union Minister reasoned. Those two factors definitely boosted the price of cotton and yarn, prompting the Textiles Ministry to seek a cap on export of cotton.

The Union Minister claimed that when cotton export was banned, yarn was exported affecting the price and when yarn export was banned the shipping out of cotton had to be factored in contributing to the yarn price destabilisation.

Mr. Maran opined that it would be ideal if the Central and the State governments saw eye-to-eye and acted in coordination to bring several benefits to the public and industrialists. In the past few years Tamil Nadu was getting a fair share of the Central Government funding and schemes.

The huge benefits and schemes that have rained on the State were due to the cordiality between the Centre and the State governments. Industrialists and public must ensure that relationship remained strong.

Mr. Maran said that the Textiles Ministry was planning to establish 20 more textile parks in the country to provide a definitive thrust to the industry and to boost exports besides generating employment.

Good news

He also indicated that the textile industry might expect some good news in the coming Union Budget. Especially the handloom weavers who had secured loans that were now weighing them down could have reasons to feel relieved, he said.