Coimbatore: Members of the India Spinning Mill Owners' Association have accused the Cotton Corporation of India (CCI) of acting in a one-sided manner, alleging that frequent fluctuations in cotton prices are adversely affecting spinning mills across the region.
The 19th annual general body meeting of the India Spinning Mill Owners' Association was held on Saturday in the Pappampatti area, with more than 200 spinning mill owners participating. Association Secretary Shanmugasundaram delivered the welcome address, while Association President Subramaniam presided over the meeting.
Speaking at the meeting, members said several industrialists were setting up mills in Odisha as the state government there was offering various incentives. They urged the Tamil Nadu government to provide incentives and subsidies to support local industries, pointing out that yarn brought from Andhra Pradesh was being sold within Tamil Nadu.
Members said several issues had arisen due to the functioning of the Cotton Corporation of India. They stated that cotton prices were fluctuating more than three times within 30 days, causing significant difficulties for both small and large spinning mills. They called for all associations to work together to find a solution and urged steps to ensure that cotton prices remain stable for up to 90 days.
They also urged the government to provide the infrastructure and facilities required by the industry and called for greater promotion and procurement of solar power, urging the Tamil Nadu government to expedite measures in this regard.
The members further questioned the reasons behind the fluctuations in CCI cotton prices and alleged that traders were forming a syndicate to make excessive profits. They demanded that cotton prices be determined with India as the centre, alleging that while certain people were benefiting from CCI operations, spinning mill owners were being affected. Expressing concern over the possibility of power shortages, members also urged the Tamil Nadu government to provide an exemption from network charges.
A total of 12 resolutions were adopted at the meeting. The association welcomed the Central government's decision to reduce GST rates from four slabs to two and levy GST at only 5 per cent and 18 per cent from September 22, 2025. It also welcomed the reduction in GST on synthetic fibre yarn from 12 per cent to 5 per cent. The association reiterated its demand that the Cotton Corporation of India sell cotton domestically at prices on par with international rates.
