Interviews
Cotton export should be permitted only from Jan 2011 onwards
05 Oct '10
5 min read
It may be noted that due to abnormal increase in the cotton yarn prices, subsequent to increase in cotton prices, the knitwear exporters have already lost their export orders and buyers have started resorting to our competing countries. Once if the buyers leave our country, it is difficult to bring them back and renew the exports.
More importantly, the knitwear exporters are not able to get orders even with the reduced level of cotton yarn prices and struggling to maintain their competitiveness and sustain in the global market.
We wish to make a note of it that our main objective is our cotton growing farmers should get the international prices and as of now, our farmers are getting the international prices and therefore, MNC's should not be allowed to derive benefit out of cotton exports.
In view of this, the cotton exports should not be allowed as the value added item of cotton is fetching more foreign exchange about eight to ten times to our Country. We wish to emphasis a point that once if the quality cotton is exported to our competing Countries then their exporters only will get real benefits out of it since they could produce quality items and ultimately, giving our exporters a stiff competition in the global market.
We would request that the following measures may be implemented to control the cotton and yarn prices.
• Cotton export should be permitted only from 1st January onwards.
• Only 55 lakh bales per annum should be permitted for exports.
• Cotton should be brought under essential commodities act.
• Cotton procurement should be done on Actual User Condition basis, so that the speculation and hoarding can be avoided.
• Mills should be advised to maintain the same yarn price atleast for three months.
• 10% of cotton yarn production should only be exported on count wise.
• 15% advalorem export duty should be imposed on cotton yarn.
• Cotton yarn export should also be calibrated.
We wish to mention that the points related to yarn were already taken up and discussed in the Cotton Yarn Advisory Board meeting held on 1st October 2010.
We would therefore request the Hon'ble Minister to help to implement the above measures to protect the domestic as well as export sector units of textile industry.
More importantly, the knitwear exporters are not able to get orders even with the reduced level of cotton yarn prices and struggling to maintain their competitiveness and sustain in the global market.
We wish to make a note of it that our main objective is our cotton growing farmers should get the international prices and as of now, our farmers are getting the international prices and therefore, MNC's should not be allowed to derive benefit out of cotton exports.
In view of this, the cotton exports should not be allowed as the value added item of cotton is fetching more foreign exchange about eight to ten times to our Country. We wish to emphasis a point that once if the quality cotton is exported to our competing Countries then their exporters only will get real benefits out of it since they could produce quality items and ultimately, giving our exporters a stiff competition in the global market.
We would request that the following measures may be implemented to control the cotton and yarn prices.
• Cotton export should be permitted only from 1st January onwards.
• Only 55 lakh bales per annum should be permitted for exports.
• Cotton should be brought under essential commodities act.
• Cotton procurement should be done on Actual User Condition basis, so that the speculation and hoarding can be avoided.
• Mills should be advised to maintain the same yarn price atleast for three months.
• 10% of cotton yarn production should only be exported on count wise.
• 15% advalorem export duty should be imposed on cotton yarn.
• Cotton yarn export should also be calibrated.
We wish to mention that the points related to yarn were already taken up and discussed in the Cotton Yarn Advisory Board meeting held on 1st October 2010.
We would therefore request the Hon'ble Minister to help to implement the above measures to protect the domestic as well as export sector units of textile industry.
Tirupur Exporters' Association (TEA)
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