Cotton yarn prices to stabilise by Dec 15: Maran

Textiles Minister Dayanidhi Maran today said prices of cotton yarn would stabilise by December 15 and urged the spinning industry not to take advantage of the current scenario and create “undue problems”.

“Let me tell you that there are certain issues in the textile sector. Basically, there is shortage of raw material, which is cotton. We already have a GoM on this issue,” Maran told reporters here.

He said the GoM had taken certain decisions and added he was hopeful the situation would ease in the coming weeks.

“By December 15 we are hoping it (price of cotton) will stabilise,” he said.

Earlier, addressing industry bodies, Maran asked them not to take advantage of the current scenario as cotton yarn prices had been increasingly steadily.

“Till prices of cotton yarn get stabilised, I appeal to you not to capitalise and create undue problem (for the weavers) on the current scenario. The government is very much concerned about the weavers,” he said.

On the Technology Upgradation Fund Scheme (TUFS) instituted by the textiles ministry to help the small traders, he said the Cabinet would clear a proposal to meet the industry requirements by the end of the year. The scheme is intended to facilitate induction of state-of-the-art or near state-of-the-art technology by small textile units. Existing units with or without expansion and new units are eligible under TUFS.

Maran was here to officially launch the roadshow, “Scheme for Integrated Textile Parks,” under a public and private sector partnership.

Maran said the ministry had since 2005 sanctioned about 65 Scheme for Integrated Textile Parks (STIPs) which would attract investments worth about Rs 19,000 crore and provide employment to five lakh people. So far, 25 were operational.

He said the ministry had also relaxed the eligibility norm for setting up STIPs to 100 acres from 50 acres, as prescribed earlier. However, there was not much response to the scheme in Tamil Nadu, he added.

“About 55 per cent textile and 60 per cent cotton yarn is produced in Tamil Nadu, but there was poor response from the state for STIPs,” he said, adding this was the reason for launching the road show for the first time here. Only about eight STIPs were operational in Tamil Nadu. The road show would be conducted in Bangalore, Hyderabad, Mumbai, Ahmedabad and in Coimbatore, he added.