Prohibition of cotton export 'timely' step - SIMA Chairman

07 Mar '12

4 min read

SIMA Chairman has appealed to the Government to investigate into the sudden spurt in the cotton contract registration and take preventive steps to avoid such mistakes in the future. He has also requested the Government to make the cotton export registration details made available on the DGFT website on a daily basis as it was done earlier by the Office of the Textile Commissioner to enable the industry to understand the market supply-demand position and also enable the government machinery to take appropriate steps on time.

SIMA Chairman has also appealed to the government to provide necessary funding to Cotton Corporation of India to procure the cotton at the current prices to extend necessary support to the farmers. He has further appealed to the textile mills which are facing liquidity crunch to cover maximum possible quantity of cotton to protect the interests of the farmers and also to cover quality cotton.

While appreciating the decision on cotton export prohibition as the first step in the right direction on time, he has also appealed to the Hon'ble Finance Minister to immediately announce the financial restructuring package consisting of two year moratorium for repayment of loans, conversion of eroded working capital into five year term loan with necessary RBI guidelines permitting repeated restructuring facility and also additional working capital fund to enable the mills to immediately step into the market and pay the reasonable price to the farmers.

SIMA Chairman has mentioned that restructuring package alone can give immediate solution for the current crisis on cotton front.

Southern India Mills Association (SIMA)

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