SISPA Urges Cotton Warehouses in Tamil Nadu to Support Textile Industry

ENA Sectors 2024-09-27 16:49:15 Coimbatore, Sep 27 (KNN) The South India Spinners Association (SISPA) has made a significant appeal for the establishment of cotton warehouses in Tamil Nadu, highlighting the state's pivotal role in the nations textile sector. During its annual meeting held in Coimbatore, the association underscored that textile mills in Tamil Nadu consume approximately 45 per cent of the cotton produced across the country, making easier access to this essential raw material a critical priority. The association is calling on the Cotton Corporation of India (CCI) to set up local warehouses, which would facilitate direct access to cotton for mills, thereby reducing logistical challenges and costs. Currently, mills face a daunting interest rate of 15 per cent when lifting cotton after the designated free period. SISPA is advocating for a reduced rate of 6.5 per cent to ease financial burdens on textile producers. In addition to the warehouse proposal, SISPA emphasised the need for the Central Government to implement a direct transfer system for the Minimum Support Price (MSP) to cotton farmers who sell to the CCI. This move aims to ensure fair compensation for farmers while also stabilising market conditions. Furthermore, the association called for stricter oversight on cotton purchases by mills, urging the government to monitor whether mills are buying beyond their consumption capacity, which could lead to surplus stockpiling and market distortions. Another critical aspect of SISPA's recommendations includes the temporary exemption of cotton imports from the 11 per cent duty between April and October. This measure is intended to secure raw material availability for the textile industry while safeguarding farmers' livelihoods against market fluctuations. The annual meeting also recognized the contributions of notable leaders within the textile community. Three former presidents of SISPA—V. Soundararajan of Ellen Textiles, K. Narayanasamy of Micrro Cotspinn India, and A.V. Ramaraj of AVR Textiles—were honored with the Scroll of Honour and Lifetime Achievement Award for their invaluable service to the industry. SISPA's current leadership was also announced, with J. Selvan stepping in as president, supported by vice presidents G. Venkatesan, N. Pradeep, and R. Arunkarthik, along with secretary S. Jagadesh Chandran and treasurer N. Vijayakumar. The resolutions passed at this meeting reflect SISPA's commitment to enhancing the competitiveness of Tamil Nadu's textile industry while ensuring sustainable practices that benefit both producers and consumers in the cotton supply chain. (KNN Bureau) 39432 https://knnindia.co.in/news/newsdetails/sectors/sispa-urges-cotton-warehouses-in-tamil-nadu-to-support-textile-industry 2024-09-27 16:49:15 knnindia.co.in SISPA Urges Cotton Warehouses in Tamil Nadu to Support Textile Industry