Tamil Nadu Chief Minister Stalin has written to Prime Minister Modi, requesting the withdrawal of import duties on cotton. In the letter, he also urged the Prime Minister to restructure the Emergency Credit Line Guarantee Scheme (ECLGS) and impose a temporary ban on the export of waste cotton.
Stalin highlighted that the significant increase in cotton prices has had a detrimental effect on the spinning industry in Tamil Nadu, impacting the cost of yarn and fabrics. He pointed out that Tamil Nadu is home to 15 lakh employees and 1500 spinning mills.
The Chief Minister informed that the spinning mill association in the state has ceased production since July 15 due to the high cost of cotton. He emphasized that the industry is facing challenges such as increased operational costs, higher bank interest rates, and reduced demand in both national and international markets.
Stalin appealed to the Union government to extend the moratorium on the repayment of short-term loans provided under the ECLGS for an additional year. It is worth noting that repayment for micro, small, and medium enterprises (MSMEs) under the ECLGS has recently commenced following the Covid-19 moratorium on all loans.