'Determine cotton surplus to protect textile industry'

Top Stories

»	Indian markets trade higher despite West Asia tensions
»	Sensex, Nifty open 1 pc lower amid West Asia tensions, weak global cues
»	India clocks robust 7.7 pc GDP growth in 2025-26, Q4 growth at 7.8 pc
»	RBI keeps repo rate unchanged at 5.25 pc, maintains ‘Neutral’ stance
»	Crude oil prices fall over 1 pc as ceasefire hopes ease West Asia concerns

SME Times News Bureau | 26 Aug, 2010
The domestic textile industry has urged the government to bring in a raw material security system for the industry by determining the cotton exportable surplus and permitting exports only in installments.

14 industrial associations representing the spinning, weaving and garment sectors met in Coimbatore recently and submitted a joint memorandum to the Union Government, demanding that cotton exportable surplus should be decided immediately on the basis of the current data available.

The recent notification from Commerce Ministry permitting cotton exports on Open General Licence (OGL) with effect from October and removal of export duty had brought these associations together, who said that the surplus should be permitted for exports in equal monthly installments from October 2010.

The entire textile industry would come to a grinding halt for want of raw material, throwing several millions out of job, if cotton export is permitted without restrictions, said J Thulsidharan, Chairman, Southern India Mills' Association (SIMA) on behalf of the associations.

The government's decision to permit export of almost 85 lakh bales as against the earmarked quantity of 55 lakh bales by Cotton Advisory Board at the beginning of cotton season (Oct-Sept) would bring down the closing stock to around 38.5 lakh bales, making to stock to use ratio at 15 percent, he pointed out.

Whenever the stock to use ratio was dipped below 20 percent, the cotton prices have increased abnormally, he added, pointing out that the recent notification notification had resulted in jacking up the prices of cotton almost rs.4000 per candy of 355 kg within a month.

Besides, SIMA, Tirupur Exporters' Association, Tamil Nadu Spinning Mills Association, South India Small Spinners Association, Handloom Export Promotion Council, Madurai Spinning Association, South India Cotton Association and Federation of Indian Export Organisations, were among the association that submitted the joint memorandum.