Textile mills in Tamil Nadu have started to use the shipping route, instead of road, to transport cotton from Gujarat. As against 1,200 containers of cotton transported by sea last year from Gujarat to Tamil Nadu, the volume this year increased to 2,600 containers till January. It is expected to touch about 4,400 containers by the end of this month.

The cost of transporting one bale of cotton by road from Gujarat to Tamil Nadu works out to nearly Rs 850. It is between Rs 640 and Rs 790 by ship. During the last three months, Southern India Mills’ Association (SIMA) has held discussions with the Indian National Ship Owners’ Association and the revised rates for transport by ship range between Rs 590 and Rs 730 for a bale of cotton. While one shipper is offering the service now, two more have expressed interest.

Some textile mills bring cotton from Gujarat by ship and even send return cargo (fabric or garments) to the northern states in the same container. SIMA had written to the Tamil Nadu chief minister, seeking steps to bring down the cost further. Most of the cotton from Gujarat or Maharashtra arrives at the Tuticorin port.

Tamil Nadu accounts for one-third of the textile business in the country and textile mills in the state account for 44 per cent of the total spinning capacity of the country.