As stated by the South India Spinners Association (SISPA), possibly all the textile industry stakeholders may unite to urge the Union Government to allow exports of cotton on monthly quota basis, considering factors like production, availability and consumption. This would secure good returns for cotton cultivators and would also help to sustaining cotton prices at a steady level.
SISPA articulated its concern that, the small and medium size spinning units which buy cotton as and when need arises, and supply their products only to the local yarn market, may be required to close down their units for inability to absorb the rising cotton prices.
It further said that, the cotton prices have almost doubled over the last year, which has also lead to a surge in yarn prices, and has thus raised the fury of the powerloom, hosiery and garment sectors. It is now expected of the Central Government that it should defer cotton exports till 60 percent fresh crop hits the market, and after that too should allow it, if there is exportable surplus.
SISPA for long has been urging the government to adhere to the international standards and maintain a stock to consumption ratio of minimum 40 percent, but the government has yet not acted on it.
In place of announcing an export policy for cotton, the Centre rather should have increased the Minimum Support Price (MSP) for cotton. SISPA, even criticized the government's move of allowing cotton exports even prior to arrival of the fresh crops in the market, as this has not only caused the cotton prices to sky rocket, but has also instigated false shortage of cotton in the markets. The move has had a detrimental effect not only on the spinning mills, but rather on all the segments using cotton.
Fibre2fashion News Desk - India
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