Tamizhaga Vivasayigal Sangam on Saturday highlighted the hazards that may follow the removal of import duty on cotton by the Centre.
In a petition to Chief Minister C. Joseph Vijay, State organising secretary of the association S. Ranganathan said increase in cotton price was a temporary phenomenon around the world. The premise that the removal of import duty would benefit Indian textile industry was flawed, Mr. Ranganathan explained, submitting data on cotton production.
While cotton production flourished over the past six decades, there was difficulty in determining market requirement, leading to the country importing cotton.
It will be in the interests of the State and the rest of the country to give effect to tripartite contract farming, involving the government, industry and farmers.
Moreover, India has failed to take advantage of the currency exchange rates to become globally competitive over the past five years, Mr. Ranganathan pointed out.
The government should introduce measures to reduce input costs in cotton cultivation in long-term interests of the farmers, and the textile industry that provides substantial employment, Mr. Ranganathan emphasised.
