Rising cotton prices hit Tamil Nadu textile hub Coimbatore

By

Isabelle Crossley

Published
Apr 6, 2022

Increasing raw cotton prices and a scarcity of supply are affecting textiles businesses in Tamil Nadu’s garment hub Coimbatore, but opinions are mixed on whether or not cotton should be imported to improve the situation.

Over the past year, textile businesses in Tamil Nadu have reported challenges due to high cotton prices, ET Bureau reported. As Coimbatore’s garment industry is the area’s largest employment providing industry, the issue is affecting the state’s entire economy.
 
“Industry performed well but high cotton prices jeopardised scenario this year,” the Confederation of Indian Textile Industry’s chairman T Rajkumar told Asian News International. “We need 320 lakh cotton bales but there's a dearth of 60 lakh bales. It's hoarded by large multinational cotton traders and ginning factories.”

The lack of cotton has been attributed by some, including Rajkumar, to hoarding by traders which suggests that there is indeed enough cotton in the country and government regulations could help to release some of the supply. However, some traders’ bodies are asking to be allowed to import cotton as a solution.  
 
“Our major concern is the lack of raw materials in terms of quality and quantity,” said the chairman of the South India Mills Association Ravi Sam, Asian News International reported. “If cotton is really not available then we should be allowed to import cotton on a war footing.”