Home / Knowledge / News / Textiles / Cotton ginners face legal threat for breach of contracts
Cotton ginners face legal threat for breach of contracts
04
Dec '10
Tanzania's cotton ginners have failed to fulfil their supply contracts with overseas buyers, due to which they are now facing threat of legal action from the Liverpool Cotton Association (LPA) tribunal, which serves as an arbitration centre for cotton traders across the world.

On one hand, the Tanzanian ginners are claiming that, they were not able to procure enough cotton to fulfil their supply contracts, and on the other, it is believed that some ginners rather diverted their sales to other highly paid contracts to gain from the commodity's record high prices.

Such deceitful companies are confronting the threat of severe penalty like a complete ban on trading, by the LCA tribunal.

Further, the cut-throat competition prevailing in the markets have caused the commodity prices to surge to Tsh1,200 that is $0.81 per kg. But then, most of the small farmers who already sold their crops at entry level price of Tsh600 ($0.4) per kg were not able to reap the benefits of this surge in the commodity price.

The Tanzanian government initiated a cotton and textile development programme, in 2008. The programme was intended to raise the cotton production from current 700,000 bales to 1.5 million bales by close of 2015.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


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