Don’t shift onus on Centre over tariffs: EPS to DMK

CHENNAI: AIADMK general secretary Edappadi K Palaniswami on Sunday criticised the DMK government for seeking financial assistance from the Centre to support MSMEs in Tirupur and Coimbatore, in the backdrop of US tariffs.

These sectors are already suffering due to steep property tax increases, power tariff hikes, and yarn price volatility, further exacerbated by the 50% tariff imposed by the Trump administration, EPS said.

“The TN government’s approach has once again proven that Chief Minister MK Stalin is keen to shift responsibility onto others. He is at the forefront of such practices and has demonstrated this on multiple occasions,” said Palaniswami in a statement, referring to the CM’s letter to PM Modi seeking support for the textile industry in the wake of the US tariff hike.

Palaniswami further stated that the industry has been in crisis ever since the DMK came to power.

“I recently wrote a letter to the Prime Minister, appealing to him to take necessary measures to protect the industry from the impact of the US tariff hike and to create opportunities to explore new markets,” he said, adding that he also urged the Centre to announce a six-month moratorium on interest payments to help overcome the crisis.

Writing to Modi, seeking immediate relief measures for Tirupur knitted apparel export industry, Palaniswami had said he appreciated the initiatives of the Central government to diversify export destinations beyond the United States.

Still, he said there was an urgent need for immediate relief measures.

The AIADMK chief urged the PM to consider urgent interventions including compensations and incentives, reduction in tax on cotton yarn and loan rescheduling and interest relief.

Providing financial relief in the form of compensations or export incentives to counterbalance the sudden loss of competitiveness caused by the steep tariff hike was a key demand put forth by Palaniswami. Introducing relief on the tax rates of cotton yarn to lower the overall cost of production, thereby enabling Indian knitwear to remain competitive in international markets, was another request.

The AIADMK chief told the Prime Minister: “As you are aware, the Tiruppur Knitted Apparel hub is one of the most vital economic lifelines of Tamil Nadu, providing employment to more than nine lakh persons, including not only the people of Tamil Nadu but also a significant workforce from other states such as Bihar, Uttar Pradesh, and Chhattisgarh.”

Further, Palaniswami said: “Tirupur contributes nearly 60% of India’s knitwear exports, generating substantial foreign exchange for the country. However, the industry needs support now.”