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

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Rupa Sood and Sharan Apparao
Nayaab

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search