Ginners-Meet's Consensus

01 Jul '11

5 min read

However, the participators in the meet arrived at decision that writ petition shall be withdrawn provided even the new entrants in business should be allowed to export the additional 10 lakh bales of cotton.

Next, it was decided that all cotton ginners in the country will have to become the members of the All India Cotton Ginners Association (AICGA). All the State Governments should form a committee to apply for increasing export quota by 25 lakh bales of cotton, and the government should make a committee consisting of 5 persons in order to hear the application.

The meeting also came to consensus that the unstable price problems or the excessive bargaining issues, which the Southern mills are facing, should be dealt with by entering into a contract according to the parameters of cotton before making a deal.

This means the business transactions should be done only according to a contract and not on basis of oral negotiations. Should there be a problem, a committee at the AICGA should look into the matter, carry on the related investigations about stock, quality etc, and the decision taken by them, thereafter, should be regarded worth abiding.

This will ease the business transactions and free the people of problems occurring due to price fluctuations. “Rather price fluctuations can also be controlled in this manner,” asserts Mr Valia.

Presently, textile value chain includes textiles, spinning, dyeing, garmenting and retailing and has no mention of ginning. Though it is a very important link in textiles it is not considered as an industry. The participators also, in unity, have concluded to bring this to government's notice and ask for equal significance to be given to ginner fraternity too.

“Uncertainty in policy tenure is also a big loophole for industry as it brings volatility in trade terms,” expresses Mr Valia.

He further shares his experience stating-“I recently visited China but they are not ready to do business with us as all the buyers say that they are not able to take stocks from us as our trade policies do not assure a fixed quota for the business. Even if we desire to buy American or Australian cotton we cannot do so. The overseas buyers are very upset with the policies of the Indian government.”

Therefore he suggests the minimum tenure of the policy should be at least one year, along with some realistic approach while coining its tenure, terms and conditions encompassing betterment for entire communities trading in the sector.

Amongst participators were representatives from Saurashtra Cotton Ginners Association, Gujarat Ginners Association, Cotton Association members from MP, Maharashtra, AP, Karnataka and TN, Advisor Committee members from Gujarat, and Punjab Cotton Ginners & Factories Association. In all 90 industry people attended the meet.

“There was nobody heading the meeting, all state governing bodies mutually had a healthy discussion and came to a conclusion,” replies Mr Valia in satisfaction post meet.

Fibre2fashion News Desk - India

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