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Export enhancement shocks the Indian spinning sector
Jun '11
Cotton export enhancement by one million bales this season has shocked the Indian cotton spinning sector.

Coimbatore-based The Southern India Mills' Association in a statement, June 9th has expressed dissatisfaction with the recent Indian government's decision to cap the cotton export this season at 6.5 million bales of 170 kg each instead of 5.5 million bales. Government of India on June 8th decided to increase this year's cotton export by one million bales (170 kg each).

Mr. J. Thulasidharan, Chairman of (SIMA) has stated that the government has earlier assured to maintain a closing balance of 5 million bales. With the enhanced export limit, the closing stock this year will come down to 1.75 million bales. In a statement, SIMA Chief has criticized India's Agriculture Ministry for over estimating this year's crop to be 33.9 million bales. SIMA is backing an estimate of 31 million bales, which is less than the Agriculture Ministry's estimate.

SIMA has pleaded the Indian government to reconsider its June 8th decision to allow more cotton export from India.

Seshadri Ramkumar, Texas Tech University, USA

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