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

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Urs Stalder
Sanitized AG

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Pranav Mishra
Huemn

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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