'Yarn prices skyrocketing': OPS urges Stalin to hold talks with Union govt

CHENNAI: AIADMK coordinator and former chief minister O Panneerselvam on Monday urged the DMK government to discuss with the Union Government to bring down the yarn prices here.

The AIADMK leader, in a statement, said as the yarn prices were skyrocketing, the textile industry has been greatly affected. "At the beginning of 2020-2021, the cotton prices were Rs 38,000 per candy and now the rate has been increased to Rs one lakh", he said. He added that within one year, the cotton prices have increased to about 162%.

Panneerselvam said last year when the textile industry faced several issues, the Goods and Service Tax (GST) has been increased from 5% to 12% for all readymade garments. "At that point of time, there were also talks that the Centre should reduce 11% on import tax for cotton," he said. "I have also written to the Union Textile Minister in this regard," he added.

The deputy opposition leader of the House pointed out that when the Union Government has scrapped the import tax on cotton, it was thought that the prices of cotton would reduce. "However, the situation was totally different," he added.

The AIADMK leader claimed as the textile industry was facing a downfall due to the increase in the cotton prices, the manufacturers have also incurred severe losses and a situation has come that they could not continue their business anymore. "There were also reports that protest demonstration would be held in Tirupur, Coimbatore, and Erode demanding to reduce the cotton price," he said.

Stating that in the name of trade to yield more profit, the cotton was hoarded, the AIADMK coordinator said it also the duty of the Tamil Nadu government to know who and what were the reasons for the increase in cotton price.

"Therefore, the Chief Minister should immediately intervene in the issue and if necessary, he could also discuss with the Centre for taking steps in reducing cotton prices," he added.