‘Volatility in cotton price would ease soon’

The fluctuating price of cotton that has affected the fortunes of the textile industry is expected to stabilise in the first week of September when more produce arrive at the markets, Textile Minister O.S. Manian said while replying to a special calling attention motion in the Assembly on Friday.

Blaming “seasonal change, drought and floods” for the price volatility, the Minister said the State government was taking action to bear the financial burden and the situation was expected to improve with the next produce scheduled to arrive at the markets in the first week of next month.

Earlier, DMK legislator N. Karthik (Singanallur) moved a special calling attention motion in the House over the issue and urged the State government to set up a State-level body similar to the Centre’s Cotton Corporation of India for procuring cotton from producers during the off season and storing it to tide over situations like these.

However, the Minister maintained that the present situation was “temporary” and added that it would ease once the new produce arrived at the market.

In a detailed report tabled in the House, the Minister alleged that the situation was also due to the removal of cotton from the Essential Commodities Act by the Centre in February 2007.