CM Stalin Puts Up Three Demands To Revive TN Spinning Sector
Tamil Nadu Chief Minister MK Stalin has demanded scrapping import duty of 11 percent on raw cotton imports, banning waste cotton exports and restructuring the Emergency Credit Line Guarantee Scheme (ECLGS).
In a letter to PM Narendra Modi, Stalin said these three measures are needed to help revive spinning mills mainly in the MSME category in the state.
Stalin added that due to rising operational costs and poor demand in domestic as well as international markets, the spinning sector has plunged into a crisis, due to which they have stopped production from July 15.
“Repayment of ECLGS has also begun which has created an additional burden on spinning mills, thereby increasing their production costs,” he added.
Stalin requested the PM to restructure existing loans under ECLGS, convert them into six-year term loans, and fresh loans be provided under ECLGS, to reduce the regular banking interest rate.
Stalin also requested for a temporary ban on export of waste cotton to tide over the shortage faced by open-end spinning mills which fall under the micro-enterprises category.
Stalin added that these open-end mills contribute to 35 percent of yarn production in the country, which are mainly used in low-end fabrics.
With 1,500 spinning mills and around 1.5 million workers, the spinning industry is one of the main engines of the economy in Tamil Nadu.