Union Minister Piyush Goyal also announced the formation of the Cotton Council of India and its first meeting would be held on May 28 to discuss, deliberate and prepare an action plan to bring out tangible improvement in the cotton segment.
Union Minister Piyush Goyal held a meeting with stakeholders from the cotton value chain to discuss the unprecedented price rise witnessed in cotton and yarn prices in the current season, the Textiles Ministry said on Wednesday.
Recommended ArticlesView All
Delhi is one of the most populated cities prone to earthquakes in India — can it handle what Turkey couldn't
Feb 7, 2023 IST6 Min(s) Read
A look at Salman Rushdie’s Victory City and controversies surrounding the author
Feb 7, 2023 IST4 Min(s) Read
Ways to save tax other than Section 80C with your home loan
Feb 7, 2023 IST3 Min(s) Read
From boyhood heartthrob to a serious musician
Feb 7, 2023 IST6 Min(s) Read
During a meeting with stakeholders from the cotton value chain on Tuesday, the textiles minister "gave a clear and loud message to all stakeholders to resolve cotton and yarn price issue, in the spirit of collaboration rather than competition and super profiteering, without pushing government to intervene as it may have long term impact on cotton value chain," the Ministry said in a release.
In the meeting, a cross-section of views and suggestions were deliberated for softening cotton and yarn prices on an urgent-basis, to address the unprecedented price rise witnessed in the current season, the Textile Ministry stated. It was pointed out that cotton productivity is the biggest challenge in the country, thereby resulting in less cotton production despite the largest area under cotton cultivation, it added.
Addressing the meeting, Goyal said the Centre will "actively consider" the demand of the spinning sector for exemption from import duty on those import contracts in which bills of lading are issued up to September 30, 2022. The Minister called upon the spinning and trading community to ensure hassle-free supply of cotton and yarn first to the domestic industry and appealed to divert only surplus cotton and yarn for exports.
He cautioned that export should not be at the cost of the domestic industry, which is the largest generator of employment in the country. The Minister emphasized the need for making better quality of seeds available to improve productivity of cotton farmers.
He stressed the need for handholding of cotton farmers, besides extending all possible support to stakeholders engaged in backward and forward integration. Goyal also announced the formation of Cotton Council of India under the Chairmanship of Suresh Bhai Kotak.
The council will include representation from Ministries of Textiles, Agriculture, Commerce, Finance, Commerce and Industry, Cotton Corporation of India and Cotton Research Institute. The first meeting of the proposed council will be held on May 28 to discuss, deliberate and prepare a robust action plan for bringing out a tangible improvement in the cotton segment.
The predominantly cotton-based textile industry is facing a long-drawn recession on the cotton front as the cotton price increased from Rs 44,500 per candy in February 2021, when an 11 percent import duty was levied on cotton, to Rs 90,000 per candy in March 2022.
The steep increase in cotton price and its impact on the prices of yarns and fabrics is severely impacting the potential growth of the cotton textile value chain.
First Published: May 18, 2022 3:53 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!