Cotton Crisis: Tamil Nadu fabric makers halt production

Soaring cotton prices are crippling India's textile industry. The cost of cotton has jumped from Rs 58,000-59,000 per candy in early February to Rs 62,000 currently, causing yarn prices to rise significantly. This has forced many textile manufacturers to halt production by up to 50 per cent.

Fabric makers say they're struggling to absorb these rising costs, especially after a disappointing Diwali season. The South India Hosiery Manufacturers Association says cotton prices should ideally be around Rs 55,000-57,000 per candy. The issue stems from a shortage of cotton reaching the market this season. While production was estimated at 325 lakh bales, only 215 lakh bales arrived. Cotton mills and knitwear took 125 lakh bales, leaving the remaining 90 lakh to be acquired by the Cotton Corporation of India and traders.

Industry representatives are urging the government to intervene and stabilize cotton prices. The textile department has received complaints and forwarded them to the union ministry. However, they acknowledge the market volatility due to the cotton shortage and express hope for future stabilization.