Middle-men, traders creating havoc by pushing up price of cotton: Exporters | Business Standard News

Clipped from: https://www.business-standard.com/article/economy-policy/middle-men-traders-creating-havoc-by-pushing-up-price-of-cotton-exporters-122010301170_1.html

The TEA said the 11 per cent total import duty existing on cotton has been the reason for the cartelisation of players to increase the domestic cotton prices and make an abnormal profit

The pink bollworm has been damaging Maharashtra's cotton crop since the last two years.

: Seeking immediate intervention of Union Textile Minister Piyush Goyal to protect the knitwear garment sector, Tirupur Exporters’ Association (TEA) Monday accused middle-men and traders of creating a havoc by jacking up the price of cotton lt during the cotton arrival season.

In a letter to Goyal a copy of which was made available, the TEA said the 11 per cent total import duty existing on cotton has been the reason for the cartelisation of players to increase the domestic cotton prices and make an abnormal profit.

“Our apprehension is that the price hike of cotton does heavily impact the garment- exporting units and leads to loss of exports, including employment. Moreover, the sustainability of the MSME garment units will also be doubtful,” TEA president Raja M Shanmugham said in the letter.

“Our main requisition is for removal of duty imposed on cotton immediately and also to protect the garment sector. Necessary steps have to be taken to break the cartelisation and also see the possibility of imposing ban on cotton exports,” he said adding that industry was looking up to the Minister’s attention and save the textile industry.

Thanking the Minister for addressing the requirements of the textile industry one by one and the positive measures have helped the industry enhance the performance in terms of growth and exports, TEA said the industry always supported the cotton-producing farmers getting better price for their produce as that would encourage them to continue to raise the crop and take the right scientific techniques to increase productivity.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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