Home / Knowledge / News / Textiles / TEA appeals to impose ceiling on cotton exports
TEA appeals to impose ceiling on cotton exports
26
Nov '09
Further to Government decision to continue the Cotton Exports, Shri. A.Sakthivel, President, FIEO / TEA met the Hon'ble Union Minister of Textiles, Thiru. Dayanidhi Maran (26.11.2009) in New Delhi and submitted a memorandum with a requisition to impose a ceiling on cotton exports, 4 lakh bales monthly and 50 lakh bales annually.

Shri.Sakthivel suggested that with a view to strike a balance between the need of exporting limited quantity of raw cotton and availability of the same to exporters of Fabrics, Made-ups and Garments, Government may consider to allow 50 lakh bales for exports in a year with monthly ceiling of 4 lakh bales so that Raw Cotton Exporters ensure regular export supply to maintain their markets and simultaneously ensuring adequate supply of raw cotton at reasonable price to end user domestic industry.

Shri.Sakthivel said exports of Readymade Garments are continuously exhibiting decline and in the month of October 2009, the same has plummeted to 30% as compared to October 2008. He pointed out that one of the main reasons for the decline in exports has been the out pricing of Indian garments by countries such as China, Sri Lanka, Bangladesh, Vietnam, Turkey etc.

Shri.Sakthivel added that India is being out priced in international markets due to hike in Raw Cotton Prices which has resulted in increase of prices of woven cotton fabrics by 15 – 20% and the Cotton Yarn, required for Knitted Garments, by 10 – 15%. However, due to global slowdown and the fierce price competition, the garment exporters are unable to factor these hikes in the garments pricing.

Shri.Sakthivel is apprehensive that the Cotton Prices will increase further as there are reports that nearly 20 lakh bales have been bought by traders for exports. Moreover, with the floods in major cotton producing States such as Maharashtra, Andhra Pradesh and Karnataka, cotton production is expected to decline to about 280 lakh bales, which will be 10 lakh bales lower than last year's production. On the other hand, with slow recovery in US & EU, cotton consumption is expected to increase in these regions.

The hike in cotton prices will force many Textile Mills to close down thereby affecting weaving units as well as end use consumers such as fabrics, made-ups and garments exporters. It will have seriously implications for employment as textiles is the largest employment provider, next only to agriculture.

Shri.Sakthivel said if an immediate decision is taken in the matter for the benefit of both raw cotton exporters as well as exporters of value added products who on an average provide 500 to 700% value addition as raw cotton exports yield about Rs.65 per Kg. whereas exports of garments fetches about Rs.450 per Kg.

Shri.Sakthivel requested to consider the suggestion and put a ceiling on export of raw cotton and the ceiling may be monitored through the Textile Commissioner who can also endorse Shipping Bills for adhering to monthly ceilings.

TIRUPUR EXPORTERS' ASSOCIATION


Must ReadView All

Courtesy: Business wire

Textiles | On 28th Jul 2017

Taiwan launches new products at Outdoor Retailer show

The Taiwan External Trade Development Council (TAITRA) hosted the...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Fashion | On 28th Jul 2017

Kering’s first half consolidated revenue up 28.2%

Kering has announced a consolidated revenue of €7,296.2 million for...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

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

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X