Suspension of cotton export contracts - CITI

24 Nov '09

4 min read

Government introduced registration of export contracts for cotton last year and therefore the Textile Commissioner is in a position to suspend cotton exports by suspending registration of export contracts, without any other procedural requirements. Already export contracts for over 10 lakh bales have been registered with the Textile Commissioner from the current year's crop and another 10 lakh bales are reportedly with the traders for registration. Suspending cotton exports temporarily will help the textile industry to recover from its present crisis taking advantage of the recovery in western markets.

At the same time, this will also help in creating additional jobs in the spinning, weaving, processing and garmenting segments, which are mostly in the rural and SME sectors, on the strength of our best quality cotton. Sir, you will agree that exporting this valuable raw material at this juncture to our competing countries will be tantamount to exporting textile jobs, when the government is making serious efforts for creating additional jobs in the rural areas.

In this context, CITI has requested the urgent intervention of the Prime Minister, Mr Manmohan Singh to immediately suspend further registration of cotton export contracts at least up to the end of February 2010. The situation can be reviewed after that, when the trends of production and consumption would be clearer and an assessment can be made if any exportable surplus is available.

Confederation of Indian Textile Industry

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