Home / Knowledge / News / Textiles / Serious cotton situation emerging in the country
Serious cotton situation emerging in the country
13
Oct '10
Government had decided that only exportable surplus of cotton would be shipped out of the country during cotton year 2010-11 (October-September). They had also assessed exportable surplus during the year at 55 lakh bales. Registration of export contracts with the Textile Commissioner was opened on 1st October 2010 for shipment to be effected from 1st November 2010 onwards.

However, the entire quantity of 55 lakh bales was applied for registration with 10 days and therefore registration had to be discontinued on 10th October 2010. These shipments have to be completed by 15th December 2010, as per the stipulation of registration and that would mean that 55 lakh bales will have to be procured by cotton exporters by end November 2010.

According to Government's estimates, the ending stock of cotton from 2009-10 is 40.5 lakh bales. About 60-65 lakh bales of ginned cotton is expected to reach the market by end of November 2010. Monthly consumption of cotton in the country at present is over 22 lakh bales.

Thus, out of availability of around 100 lakh bales upto end of November 2010, exporters will have to procure 55 lakh bales and around 45 lakh bales would be needed for consumption during the period, leaving no ending stock. The healthy ending stock at any given time is equivalent to 2½ months consumption, i.e. around 55 lakh bales, in order to ensure proper availability of cotton in the market. This is the norm accepted all over the world.

Thus, as against the requirement of 55 lakh bales in stock, the actual stock in December 2010 would be nil or negligible if the 55 lakh bales get exported by 15th December 2010.

This situation has serious implications for the textile and clothing industry and to the economy as a whole. Shri Shishir Jaipuria, Chairman, Confederation of Indian Textile Industry has represented to the Prime Minister of India to intervene to avoid a catastrophe, by deferring exports until arrival of cotton picks up.

The following requests have been made by Chairman, CITI:

i. Cotton exports against contracts already registered with Textile Commissioner should be delayed up to 1st January 2011;
ii. Shipment of the quantity of 55 lakh bales should be staggered over the months by stipulating a monthly cap of 10 lakh bales from January 2011 onwards;
iii. It is obvious that many of the applications for registration of export contracts are speculative. Therefore, no extension of time may be allowed for those who fail to ship within the stipulated time and further applications for registration may not be accepted from them.An export incentive of 1.5% is given by government on cotton exports, by way of DEPB. Having provided for an export duty on cotton, the export incentive may be withdrawn and export duty put into operation at the earliest.

A copy of the letter is enclosed.

Confederation of Indian Textile Industry


Must ReadView All

Chinese firm sets up garment production chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up garment production chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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