Home / Knowledge / News / Textiles / CITI highlights perils of incentivizing cotton exports
CITI highlights perils of incentivizing cotton exports
21
Nov '11
Confederation of Indian Textile Industry (CITI) has pointed out that there are efforts being made by vested interests for obtaining export incentives for raw cotton.

Shri S.V. Arumugam, Chairman, CITI in a letter addressed to the Prime Minister, Commerce, Industry and Textiles Minister and Agriculture & Cooperation Minister has stated that while export of cotton is necessary and correctly being allowed without any restrictions, granting any incentives on export of cotton would make Indian cotton available to the other competing countries in the textile space at lower prices.

Shri S.V. Arumugam pointed out that in the year 2008-09, when the government had provided export incentives for raw cotton, this led to an expenditure of around Rs.1,000/- crore by way of incentives to cotton exporters. Such incentivized exports of raw cotton to competing countries ruined the domestic textile industry and government had to spend another Rs.2,000/- crore for introducing a relief package for the affected textile industry.

He has cautioned that re-introduction of export incentives for raw cotton would again lead to a similar expenditure for the government for the benefit of a few cotton exporters, though the arguments will always be adduced in the name of farmers.

Shri S.V. Arumugam pointed out that it is essential to allow export of surplus cotton. But it is of utmost importance to ensure that we do not put our cotton cheaper in the hands of our competing countries like China, Bangladesh and Pakistan, by providing incentives on cotton exports .If we do so, we would be destroying the viability of the Rs.1 lac crore textile investments made in our country, its huge employment potential and would in reality be subsidizing creation of jobs in our competing countries, while destroying employment opportunities in India.

Shri S.V. Arumugam also pointed out that current cotton prices are substantially above the minimum support prices announced by the government and there is no possibility of any drastic decline in cotton prices on the basis of the current market situation.

He requested government not to provide any form of subsidies to cotton exports as it is uncalled for, it destroys employment creation in the Rs.1 lac crore textile industry, it causes huge out flow from the exchequer and is ABSOLUTELY not necessary to protect farmers who are already adequately protected by high support prices which make cotton the most preferred crop.

Cotton is not perishable and lends itself beautifully to successful support price operations, he added. Shri Arumugam pointed out that we have evidence of the level of injury that providing subsidy for cotton exports can cause to our country, from the previous experience in 2008-09.

Confederation of Indian Textile Industry (CITI)

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search