Garment units demand measures to control input prices

The garment units in Tiruppur have appealed to the Union Finance Minister to take steps to control the prices of cotton and yarn.

Union Finance Minister Nirmala Sitharaman and the State government had a meeting on Thursday with representatives of industry associations to discuss the measures needed to control cotton and yarn prices.

The State government sought removal of 11 % import duty on cotton, removal of cotton from future trading, and the need to redefine the role of Cotton Corporation of India (CCI) to control cotton prices, said a press release from the Tiruppur Exporters' Association.

Raja M Shanmugham, president of the Association, said he requested the Finance Minister for support through Emergency Credit Line Guarantee Scheme (ECLGS) to MSMEs to meet their financial requirements.

He also said the garmenting units are predominantly MSMEs. Since the orders are booked three to six months in advance, the units are unable to manage the sudden spurts in yarn prices.

Hence, the government should not incentivise export of raw cotton and yarn to competing countries, should lift the import duty on cotton, should not permit trading of cotton on commodity exchanges, restore Interest Equalisation Scheme, and additional funds through schemes such as the ECLGS to the garment industry..

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Printable version | May 20, 2022 8:28:20 pm |