The government will look into whether CCI can sell cotton directly to textile mills: FM.
Finance Minister Nirmala Sitharaman said on Monday that the government will look into the shortage of cotton and its high prices. They will also look into whether the Cotton Corporation of India (CCI) could sell the cotton it buys directly to textile mills.
At a meeting held by the textile associations to honour the Finance Minister, people from the industry talked about high prices and asked that cotton and yarn not be exported. Also Read | “Organic cotton” production on rise in north Indian states, led by M.P. & Odisha.
Suggest a way out
The Minister said, ‘I take the problem of a lack of cotton and yarn very seriously. Not only are there not enough of them, but prices are also high. You should also give a hint about how to solve the problem. But the solution that one part of the textile value chain suggests shouldn’t affect another. After figuring out if it’s possible for CCI to sell cotton directly to the mills, I’ll call the relevant ministries.’
She told the industry to work together, speak with one voice, and talk to her often so she could learn about the problems the units were having and suggest possible solutions. She said, ‘More consultation is always important and should always be there.’
Now is a good time for Indian businesses for a number of reasons, and ‘We shouldn’t miss these chances,’ she said. Also Read | Europe fashion retailers to train Indian small cotton farmers on sustainable farming methods.
Help from the government
The Southern India Mills’ Association wanted the Technology Mission on Cotton to be announced right away, and the Confederation of Indian Textile Industry wanted to raise the GST for textile processing jobs since most inputs are taxed at 12% or 18%.