In a letter to Prime Minister Narendra Modi, MK Stalin, Chief Minister, Tamil Nadu has sought clarification on issues like import duty waiver on cotton till September 30, reduction in margin money demanded by bankers for cotton purchases and mandating cotton and yarn stock declaration by spinning mills. In order to rein in prices and disruptions in the textile value chain, Stalin has urged Modi to make stock declaration for cotton and yarn mandatory for all spinning mills to enable ginners and cotton traders to obtain actual data on cotton and yarn availability.

Import duty waiver on cotton for all contracts upto September 30, 2022 was another clarification sought by Stalin. He said the Union government has waived import duty on cotton till September 30. However, it takes more than three months for a consignment to reach Indian ports after the contract is entered, effectively import duty waiver will be available only up to June 30, 2022.