'Knitwear Club' opposes cotton export policy
A Ludhiana based, knitwear lobby has vehemently come out in opposition of the cotton export policy of the government of India, by saying that it favours a few cotton exporters as well as the neighbouring countries, who are also competitors, at a heavy cost to local textile and knitwear manufacturers.
In a memorandum sent to the Commerce Minister, Mr Anand Sharma, the “Knitwear Club”, which is made up of around 1,000 Ludhiana-based knitwear and textile producers, says that the export policy will benefit our neighbouring countries and at the same time result in low garment exports from India.
Speaking eloquently to fibre2fashion, Vinod K Thapar, President of the Knitwear Club noted, “It looks as if our cotton export policy is more concerned about the welfare of our neighboring countries and a few cotton exporters. As regards, allowing cotton exports from November 1, 2010, it will allow the exporters to purchase fresh cotton arrivals in November and December leaving the domestic industry without cotton.
“Our economy will suffer badly as it will definitely affect and result in low garment exports and it will not be out of place to mention here that knitwear/textile industry is the second largest segment after agriculture, as we absorb highest number of employees in the industry despite the stiff competition we are facing at international level, which comes under pressure following these liberties in cotton export policy. Almost every dyeing and knitting unit is going through the recessional phase due to the shortage of cotton yarn”, he added by saying.
When asked about his expectations from policy makers, he said, “Despite the problem being perennial, it needs immediate remedy. We kindly request to monitor the quantum of cotton arrivals and to first assess the domestic requirement to provide enough cotton to the local market as to safeguard the livelihood of millions of employees working in the textile sector, with equal growth opportunities for every segment of knitwear/textile industry”.
With regards to the performance of the knitwear sector in current times, he replied by saying, “Knitwear Club – Ludhiana, has been incorporated for the growth of the knitwear/textile industry and to assist its members, in case of any problems related to policy, fiscal, technical or commercial issues.
“With regards to the constant increase of cotton prices from Rs 22000 per bale in the previous cotton year to Rs 41000 per bale currently, it is pertinent to mention that it has elevated the cotton yarn prices simultaneously. The dilemma of knitwear entrepreneurs can be well understood as, spinning mills have hiked prices extraordinarily and high cotton yarn exports have had adverse effects on domestic knitting & dyeing industries, which in turn led to the total downfall in garment exports”, he concluded by saying.
In a recent interview given to fibre2fashion, Mr DK Nair, Secretary-General of Confederation of Indian Textiles Industry (CITI), too had raised concerns with regards, permitting cotton exports at the beginning of the season, by saying that, it would create a precarious situation for the textile industry in December.
Fibre2fashion News Desk - India