Sowing of seeds down by 25 per cent
The prices are expected to go up further
MADURAI: The Madurai Spinners’ Association has called for removal of import duty on cotton to check the increase in domestic prices.
In a statement issued here recently, the association said that sowing of cotton had reduced by 25 per cent in the U.S. owing to subsidy cuts, resulting in costs increasing by 40 per cent.
This was reflected in Indian cotton rates, with the prices going up from Rs. 18,000 per candy to Rs.20,500 per candy.
The prices are expected to go up further, resulting in raw material cost escalating for all spinning units, owing to appreciation of rupee.
This would lead to end-producers being unable to pay the correct price for yarn, resulting in an adverse impact on the economics of the spinning industry.
The association requested the Centre to allow import of cotton at zero duty and implement the order with retrospective effect from April 1.