The textile clusters in Tirupur, Burdwan, 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.
The Tirupur Exporters and Manufacturers Association (TEAMA) recently convened an emergency meeting and announced that the four major textile hubs around Tirupur will be shut down on September 24th and 25th. This decision comes after a continuous upward trend in cotton prices has created severe financial strain on the apparel industry.
With the government failing to stabilize cotton prices, the industry is now at a critical juncture. The sudden price surge has weakened India’s competitive edge in global export markets, where pricing plays a crucial role. The emergency meeting emphasized that this situation threatens the sustainability of many small and medium-sized textile units.
TEAMA President M. Muthurathinam confirmed that all textile units, including small workshops, will be closed for 48 hours. He urged the government to take swift action to address the issue.
The unions are calling for an immediate end to speculative trading in cotton and have proposed a 25% export tax as a measure to bring down prices. They argue that this approach would not only stabilize the market but also ensure that domestic manufacturers have access to affordable raw materials.
In the last 20 days, the price of Shanka-6 cotton—a popular variety—has surged by nearly 9,000 rupees per candy. This rapid increase has left many manufacturers struggling to keep up with rising costs.
Additionally, the associations are pushing for cotton companies to prioritize domestic demand, ensuring that sufficient supplies are available for local apparel production. They believe this step is essential to prevent further disruptions in the supply chain and protect jobs in the textile sector.
As the crisis deepens, the pressure on the government to act is mounting, and the textile industry is watching closely for any signs of relief.
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