T.N. favours new cotton corporation under PPP model, says Minister

The Tamil Nadu government has favoured establishing the Cotton Corporation of Tamil Nadu with a public-private partnership (PPP) model and a separate commission for procuring cotton and selling directly to the spinning mills would be considered at an “appropriate time”.

The Tamil Nadu government has favoured establishing the Cotton Corporation of Tamil Nadu with a public-private partnership (PPP) model and a separate commission for procuring cotton and selling directly to the spinning mills would be considered at an “appropriate time”.

“If the Cotton Corporation of Tamil Nadu is set up in PPP model, jointly with representatives from private spinning mills, organisations such as the Southern India Mills’ Association (SIMA) and representatives from cooperatives mills, it will be good. We will consult with the Chief Minister and will definitely do it,” Minister for Handlooms and Textiles R. Gandhi said in the Assembly on Friday.

He was responding to a query by DMK legislator K. Selvaraj (Tiruppur South) during the Question Hour in the House. Speaking on the issue, DMK’s I.P. Senthil Kumar (Palani) contended such a separate commission would help cotton farmers get a fair price.

Pointing out that cotton was being procured from other States and spinning mills were being severely affected by the cost, Mr. Kumar said such a commission would immensely benefit cotton farmers as well as the spinning mills.

In a detailed reply, Mr. Gandhi said while the demand was about 120 lakh bale, only 5 lakh bale was being produced by farmers in Tamil Nadu previously, but this had increased to about 15 lakh now. While 7 lakh bale was being imported, about 1 lakh bale is being procured from other States, he said.

The Minister recalled that one of the first demands he received in Coimbatore since he assumed office was a demand of over 20 years seeking to waive the 1% market cess on cotton, and when conveyed to the Chief Minister, he announced the waiver. Mr. Gandhi also recalled the efforts taken by the Chief Minister towards the waiver of the 11% import duty on cotton.