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AEPC proposes Chinese state cotton reserves model
Mar '12
In view of the withdrawal of ban on cotton exports, EXIM Bank and other financial institutions should purchase 2.5 million bales (1 bale = 170 Kg) from the open market, a leading apparel export promotion body says.

The Apparel Export promotion Council (AEPC) in a letter written to the Indian Prime Minister and also the Commerce cum Textile Minister has suggested that these financial institutions should stock cotton inventories like done by the state in China.

These inventories can be utilized either for domestic consumption or also can be exported at a later date. This measure would be helpful to farmers, spinners, fabric manufacturers and garment exporters, AEPC notes.

It warns that withdrawal of prohibition of exports of cotton would have serious impact on raw material security necessary for domestic as well as export market.

Fibre2fashion News Desk - India

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