Welcoming the Cabinet Committee announcement following “Atma Nirbhar Bharat Abhiyan” Scheme relief measures focusing on farmers and MSMEs and also hiking the Minimum Support Price (MSP) for 14 kharif crops including cotton, the South India Mills Association has appealed to the Centre to modify terms of references to benefit capital intensive segments within the textile industry.
In a statement in this regard,Mr.AshwinChandran, Chairman, The Southern India Mills’ Association (SIMA) has remarked thatthe investment limit for a medium sized industry was only Rs.10 crores as against the new limit of Rs.50 crores.
Increasing the sales turnover limit to Rs.250 crores from the recently announced turnover of Rs.100 crores, while excluding export sales turnover from this calculation, would benefit the highly labour intensive and fragmented textiles and clothing industry.
The Government may also consider modifying the definition from “investment and turnover basis” too “investment or turnover basis” to further extend the benefits to the capital intensive sectors of the textile industry viz., spinning, weaving, processing and technical textiles. This will encourage modernization and increase scale of operation so that these segments can improve their global competitiveness, said Mr.Ashwin.
SIMA Chairman welcomed the MSP increase of 4.75% for medium staple cotton and 4.95% for long staple cotton.
The minimum support price for seed cotton (kapas) for medium staple has been increased from Rs.5255/- to Rs.5515/- per quintal and for long staple, it has been increased from Rs.5502/- to Rs.5825/- per quintal.
Pointing that increasing the minimum support price was not a sustainable solution, the SIMA chief has said that the Government needs to focus on bringing back the Technology Mission on Cotton in a revised format, to increase the productivity (which is half that of other major cotton producing countries), improve quality by reducing contamination and trash cotton by adopting global best practices, says SIMA Chairman.