Cotton exporters from Panipat go on strike, today

25 Nov '10

2 min read

Cotton exporters from Panipat have taken a decision to go on strike, today, over the issue of hike in cotton prices.

In 2008-09, the overall exports from Panipat were recorded at Rs 28.6 billion. There are more than 250 textile export units in Panipat which export a variety of home textile products.

Some days ago, a strike was called by the knitwear sector of the country over similar issues and now, the cotton exporters of Panipat have called the strike.

Panipat Exporters Association has stated that the hike in cotton prices has imposed a grave threat on the home furnishing sector of Panipat which largely uses cotton for the manufacturing process. Over the last three months, cotton prices have increased by about 60 percent.

The increase in the raw cotton prices has severely affected the profit margins of the exporters and has forced them to trade their products at loss. The buyers are not ready to accept the increase in prices and this has driven several export units to close down, said the association members.

Unprecedented rise in cotton prices has caused the closure of 30-35 looms in the home furnishing sector of Panipat and has rendered about two lakh workers jobless. These workers have either been directly or indirectly involved in the industry.

The exporters had already appealed the prime minister to restrict the export of raw cotton, cotton yarn and cotton waste. But the government did not pay any attention to this issue. Forced by the passive attitude of the government in this direction and the challenges, which were caused by the rise in the prices of cotton yarn, the cotton exporters had to take the decision to keep their units closed and to go on a strike.

The association has further warned that if the government remains inactive and does not take any measure to curb the export of cotton and its by-products, the exporters as well as the industry workers will organize a rally in Delhi.

Fibre2fashion News Desk-India

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