Indian textile cluster plans to suspend production for two days from September 24

The textile clusters in Tirupur, Burdram, Somanur, Avinashi, and Erode are facing significant challenges due to the sharp rise in cotton prices. In response, local textile associations have decided to halt production for two days, demanding immediate government intervention to curb cotton speculation. Last Monday, textile and trade associations held an emergency meeting and announced that the four major textile hubs around Tirupur would suspend operations on September 24th and 25th. This move comes as cotton prices continue to surge, putting immense pressure on the industry. The ongoing price hike has placed the entire apparel sector in a crisis. With the government failing to address the rising costs, the Tiruppur Exporters and Manufacturers Association (TEAMA) took the initiative to call for this temporary shutdown. During the emergency meeting, it was emphasized that the abnormal increase in cotton prices is severely impacting India's competitiveness in the global export market, where pricing plays a crucial role. TEAMA President M. Muthurathinam confirmed that the textile clusters in Tirupur, Burdram, Somanur, Avinashi, and Erode will be shut down for 48 hours, with all textile companies and workshops closing their doors. The unions are urging the coalition government to take action against speculative trading of cotton. They have also called for a 25% export tax on cotton, arguing that this measure could help stabilize prices without restricting exports. In just 20 days, the popular Shanka-6 cotton has seen a price increase of nearly 9,000 rupees per candy, further worsening the situation. Additionally, the associations are requesting that Indian cotton companies prioritize domestic needs by purchasing and distributing cotton to support local apparel manufacturers. This move is seen as essential to ensuring the sustainability of the textile industry in the region.