The Government will study the issue of shortage and high prices of cotton and and explore the possibility Cotton Corporation of India to sell the cotton that it procures directly to textile mills, Finance Minister Nirmala Sitharaman said here on Monday.
At a meeting organised by the textile associations to felicitate the Finance Minister, industry representatives highlighted the issue of high prices and sought a ban on export of cotton and yarn.
‘Suggest solution’
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.”
She urged the industry to coordinate and speak in one voice, and 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.
Government support
The Southern India Mills’ Association sought immediate announcement of Technology Mission on Cotton and the Confederation of Indian Textile Industry sought an increase in GST for textile processing job work as most inputs attract 12 per cent or 18 per cent duty.