The issue of shortage and high price of cotton and cotton yarn will be studied and the government will explore if it is possible for Cotton Corporation of India (CCI) to sell the cotton that it procures directly to textile mills, Union Finance Minister Nirmala Sitharaman said.
At a meeting organised by the textile associations here to felicitate the Finance Minister, textile industry representatives highlighted the issue of high price of cotton and cotton yarn and sought a ban on export of cotton and yarn.
The Minister said, “I take seriously the issue of shortage of cotton and yarn and it is not just shortage, but prices are also high…You should also give an indication of the solution. But the solution suggested by one segment of the textile value chain should not have a side effect on another… I will take a call along with the Ministries concerned after studying whether it is possible to make CCI sell cotton directly to the mills.”
The Minister urged the industry to interact among them and speak in one voice, interact with her regularly so that she gets insights into the problems faced by the units, and suggest the possible viable solutions.
“Greater consultation is always important and it should be there always,” she said. For several reasons, there were opportunities now for Indian industries and “We should not let go of those opportunities,” she said.
The textile units pointed out that high cotton and yarn prices were affecting the industry. The Southern India Mills’ Association sought immediate announcement of Technology Mission on Cotton and the Confederation of Indian Textile Industry demanded increase in GST for textile processing job work as most inputs attract 12 percent or 18 percent duty.
The issue of shortage and high price of cotton and cotton yarn will be studied and the government will explore if it is possible for Cotton Corporation of India (CCI) to sell the cotton that it procures directly to textile mills, Union Finance Minister Nirmala Sitharaman said.
