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Textile exporters demand ban on cotton waste exports
Jan '11
The Madurai Textile Exporters Association has urged the government to impose a ban on export of cotton waste in order to trim down the cotton yarn prices, and has also given the suggestion to regulate raw cotton exports so as to safeguard the domestic textile firms.

The Association claimed that, the rush in cotton waste exports has lead to a sharp rise of around 15-20 percent in the cotton yarn prices, which is likely to significantly bring down the margin of the textile units.

Unlike raw cotton, export of waste cotton did not benefit the farmers in any way; rather the material was used to manufacture economical textile items for needy people.

The Association, while insisting on the imposition of a ceiling on raw cotton exports, stated that if cotton export is allowed without any regulation, it would severely affect the textile firms which has taken export orders in advance, as this would render the business of these firms unviable and may even lead to closure of these firms rendering a large number of employees jobless.

The government should take steps to avoid a situation which is likely to compel the firms to shut down owing to the scarcity of raw materials.

The textile firms located in the industrial belts of Karur, Rajapalayam and Madurai each year produced some six billion worth of goods, while employing around 10,000 workers.

Last year has seen the raw material prices going up by 100 percent, on the back of the apprehensive buying by China and Pakistan and online trading. Thus, the Association has urged the government to intervene in the matter.

Fibre2fashion News Desk - India

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