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The Central government’s reported plan to create 75 Tiruppur-like textile hubs in the country reflects over-ambition as it has come at a time when the survival of even the existing cotton-based industry is at stake due to high prices and shortage of the basic raw material. Cotton prices are ruling at an 11-year high, rising by nearly 30 per cent in the past year alone, due to virtual stagnation in production and bourgeoning domestic and export demand. Nearly 10 per cent of the spinning units in the South, including many in Tiruppur, have shut down and most factories elsewhere are operating at less than half their capacity. The competitiveness of the Indian cotton products, including garments, has been hit hard, resulting in some export orders getting diverted to rivals such as Bangladesh, Vietnam, and Indonesia. Worse still, the situation is predicted to endure even in the next cotton year (2022-23) as the remedial measures taken by the government have failed to produce the desired results.
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First Published: Tue, June 28 2022. 23:30 IST
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