Under the Ease of Doing Business Initiative by Ministry of Shipping, the sale of imported cotton has commenced at Tuticorin Port to help Tamil Nadu meet its rising cotton demand.
The Government has provided up to ‘30 days free storage facility’ for around 250 containers of cotton at the Tuticorin Port. The timeline can further be extended for another 60 days by paying a nominal charge. The traders have also been given the option to sell cotton either in India or any other country depending upon the demand.
The Southern India Mills’ Association (SIMA) has hailed the Government’s move of setting up this trans-shipment facility at the Tuticorin Port.
According to SIMA, the trans-shipment facility of cotton imported from outside India at the Tuticorin Port would help keep cotton prices stable due to ample availability of cotton in the country. “It would also be beneficial for the MSME category spinning mills to have direct and daily access that hitherto had no access,” said M Senthilkumar, Chairman, SIMA.
The textile industry in Tamil Nadu shares one-third of entire cotton textile business and 47 per cent spinning capacity of the country. The state is highly dependent on Gujarat, Maharashtra, Telangana and others to fulfil the cotton need of its spinning mills.
At present, Tamil Nadu produces just 5 lakh bales of cotton per year against its annual need of around 120 lakh bales of cotton (170 kgs per bale). To address such a huge requirement, the state’s textile sector also imports 15 per cent of its cotton from African countries, US, and Australia.
Cotton adulteration issue in the domestic supply chain has also led to increased import of cotton from foreign countries.
