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Good inventory levels of cotton – experts
Dec '09
The Union Textile Minister, Mr Dayanidhi Maran despite huge pressure from the textile industry, was smart enough, not to succumb to their demands to restrict exports of raw cotton from the country.

Ironically, one of the organisations which put up the demand was the Federation of Indian Export Organisations (FIEO), whose agenda is to promote exports. Among others South India Mills Association (SIMA) demanded an outright ban on exports of raw cotton.

According to the Cotton Association of India, cotton supply position in the country was comfortable and no restriction was needed. According to experts, India has an opening stock of 7 million bales and combining that with an output which is estimated to be between 28-29 million bales, cotton stocks are at comfortable levels.

When the textile industry began to mount pressure on the government to ban exports, cotton registrations meant for exports began shooting up in the month of November and are estimated to have crossed between 3.5-4 million bales in November.

But after the government made its stand clear of not imposing any ban on exports of raw cotton from the country, cotton exporters sighed with relief and the panic to register cotton contracts witnessed in November, tapered off, towards the beginning of December.

Fibre2fashion News Desk - India

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