Home / Knowledge / News / Textiles / Ginners demand separate quota for cotton export
Ginners demand separate quota for cotton export
27
Jun '11
On expectation of new demand following the Centre's decision to allow export of additional one million bales of cotton on June 9, price of Shankar-6 variety of cotton shot from Rs. 41,000 per candy (1 candy = 356 kg) to Rs. 45,000 per candy. However, the price did not sustain for long and started declining within a week after the announcement.

This has led to demands for further relaxation in export quota, especially from the ginners. The ginners from Saurashtra region in Gujarat have demanded a further rise in export quota and have put a condition that a separate quota should be allocated to them.

Meanwhile, the Centre has completed the process of registering applications for extra exports of 1 million bales (1 bale = 170 kg). The task of scrutinising these applications is expected to be completed by July 5 and official announcement regarding the quotas would be made the next day. Those who obtain the permission to export the extra lot will have to get their shipments cleared by September 15.

The additional export of one million bales is over and above the export limit of 5.5 million bales set for the current season that commenced in October 2010. This limit had got exhausted by January 2010 itself owing to heavy demand from Pakistan, China, Bangladesh and Indonesia.

But, even after the allocation of fresh quota, there is no rise in demand for cotton as the exporters would like to first exhaust the stocks that they had bought earlier. Moreover, there is no demand even from the side of textile producing units as they too have enough stocks of yarn. Hence, in view of sluggish demand, ginners are pitching for more export of cotton.

Last month, the ginners from Saurashtra had gone on strike asking the Centre to allow additional exports of 2.5 million bales of cotton.

Owing to deficient demand, ginners in the country have a leftover stock of five million bales. This could cause problem, especially for farmers as fresh crops start arriving in October.

The ginners claim that if a special quota is sanctioned for them, they can ensure higher prices for cultivators as the demand would intensify.

The decision of the spinning mills to exercise a 30 percent cut in production has also led to a decrease in domestic demand for cotton. Besides their mounting stocks, the spinning mills are also vexed by the Centre not extending duty drawback facilities for exports.

The affliction of Tirupur-based manufacturing units has also hit the garment industry hard. The textile-dyeing units in Tirupur were shut down following a ruling by the Madras High Court to that effect on a petition alleging the units to be polluting water of River Noyyal.

In the meantime, the Punjab Government has also joined forces with the groups demanding additional export quota for cotton.

Fibre2fashion News Desk - India

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search