Interviews
Textile leaders submit Seven Point Action Frame to Govt
14 Sep '10
5 min read
Mr. J Thulasidharan, Chairman, Southern India Mills Association (SIMA) said that apart from apprehensions that the rains would delay the arrival of the new crop in the northern zone at least up to the middle of October 2010, there are reports that large quantities from the new cotton crop are being purchased by traders through forward cover, which will further reduce and delay the availability of cotton to the mills. The availability will be further compounded by the extensive damage to the cotton crop in Pakistan on account of the recent floods and conversion of large acreage under cotton cultivation to food crops in China.
The textile industry leaders have crystallized a seven point action frame for the government to implement at the earliest to lend a measure of support to the textile industry. These are the following:-
• Registration of contracts may not be allowed for exports of cotton during the period October-December 2010 so that the best cotton of the country that arrives in the market during this period will be available for the domestic textile industry and exports will start only after supplies in the market stabilize.
• Registration of contracts for exports of cotton for the period January-September 2011 may be restricted to the exportable surplus assessed by the Cotton Advisory Board (CAB), i.e. 49.5 lakh bales.
• Contracts may be registered only for exports to actual users, in order to avoid stock transfer among traders and hoarding in order to speculate.
• In Foreign Trade Policy, cotton may immediately be brought back to restricted list subject to export licensing, so that Department of Commerce will have legal authority to restrict exports to exportable surplus.
• The exportable surplus may be reviewed in mid November 2010, as reportedly proposed by government. Excessive rains are still continuing and there is now a real risk of crop damage. The review is, therefore, important.
• An export duty of Rs.10000 per ton may be enforced for cotton so that our cotton will not be available to the competing countries at low prices.
• The export incentive of 1.5% being given on exports of raw cotton may be withdrawn immediately.
Textile industry leaders representing Confederation of Indian textile Industry (CITI), Northern India Textile Mills' Association (NITMA), Indian Spinners' Association (ISA), Clothing Manufacturers Association of India (CMAI), Apparel Exporters and Manufacturers Association(AEMA ), Tirupur Exporters Association (TEA), Apparel Export Promotion Council (AEPC), The Cotton Textiles Export Promotion Council (Texprocil), The Southern India Mills Association (SIMA) etc, addressed the Press Conference and forwarded their representations jointly and separately to the Government.
The textile industry leaders have crystallized a seven point action frame for the government to implement at the earliest to lend a measure of support to the textile industry. These are the following:-
• Registration of contracts may not be allowed for exports of cotton during the period October-December 2010 so that the best cotton of the country that arrives in the market during this period will be available for the domestic textile industry and exports will start only after supplies in the market stabilize.
• Registration of contracts for exports of cotton for the period January-September 2011 may be restricted to the exportable surplus assessed by the Cotton Advisory Board (CAB), i.e. 49.5 lakh bales.
• Contracts may be registered only for exports to actual users, in order to avoid stock transfer among traders and hoarding in order to speculate.
• In Foreign Trade Policy, cotton may immediately be brought back to restricted list subject to export licensing, so that Department of Commerce will have legal authority to restrict exports to exportable surplus.
• The exportable surplus may be reviewed in mid November 2010, as reportedly proposed by government. Excessive rains are still continuing and there is now a real risk of crop damage. The review is, therefore, important.
• An export duty of Rs.10000 per ton may be enforced for cotton so that our cotton will not be available to the competing countries at low prices.
• The export incentive of 1.5% being given on exports of raw cotton may be withdrawn immediately.
Textile industry leaders representing Confederation of Indian textile Industry (CITI), Northern India Textile Mills' Association (NITMA), Indian Spinners' Association (ISA), Clothing Manufacturers Association of India (CMAI), Apparel Exporters and Manufacturers Association(AEMA ), Tirupur Exporters Association (TEA), Apparel Export Promotion Council (AEPC), The Cotton Textiles Export Promotion Council (Texprocil), The Southern India Mills Association (SIMA) etc, addressed the Press Conference and forwarded their representations jointly and separately to the Government.
Confederation of Indian Textile Industry (CITI)
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