Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / SIMA appeals for immediate ban on cotton exports
SIMA appeals for immediate ban on cotton exports
03
Nov '09
The Indian textile industry has been facing the worst ever crisis in the history during the last two years mainly due to the abnormal increase in cotton prices and the monopolistic roles played by the multinational and leading cotton traders in the country.

Consequent to the removal of the cotton textiles from the Essential Commodities Act as a part of liberalization the multinational cotton traders started dominating in the Indian market during the last two years. These traders are flooded with cheap funds and are able to cover large volume of cotton and speculate the prices.

In addition, the trader-friendly policies announced by the Government during the last two years have further strengthened their hands and seriously affected the entire textile industry throwing several lakhs of people out of jobs. Though the country has been achieving record crop during the last two years which is likely to continue in the current season also, this has benefited only the traders. During the current season, the traders are covering major portion of good quality cotton for exports and therefore, the domestic industry is not able to procure the required cotton. Normally, the cotton prices would come down by at least Rs.1,000 to Rs.1,500 per candy during October-November when compared to September. But during the current season, the cotton price has already gone up by almost Rs.2,000 per candy when compared to September price. The prices for standard varieties like Shankar-6 have already exceeded Rs.25,000 per candy as against Rs.22,600 prevailed during September 2009.

In a press release, Mr.J.Thulasidharan, Chairman, The Southern India Mills' Association(SIMA), has appealed to the Central Government to immediately ban cotton export and stop registering any cotton for export purpose considering the grave situation. Mr.Thulasidharan has said that the monsoon failure and floods in few cotton growing States have considerably affected the cotton production and the actual production might be only around 260 lakh bales as against 290 lakh bales produced during the last year. He has further said that only around 150 – 160 lakh bales would be of good and above average quality cotton. SIMA Chairman has cautioned that if these quality cotton are allowed for export, the domestic industry which need around 240 lakh bales would end up with all substandard and inferior quality cotton but would be compelled to pay the price of good quality cotton and also depend on imported cotton to meet the customer requirements.

Mr.Thulasidharan has said that the textile industry in South India which accounts for almost 50% of the spinning capacity in the country is incurring 5% additional cost towards transport, taxes, insurance etc., when compared to any destination in far east countries which are able to source cotton from India. SIMA Chairman has reiterated that the industry has been pleading the Central Government to provide working capital at a competitive cost to have a level playing field with the multinational cotton traders who are able to get any amount of fund at 3% to 4% interest rate, but the Government is yet to take any decision on this front.


Must ReadView All

Trump signs revised free trade agreement with S Korea

Textiles | On 25th Sep 2018

Trump signs revised free trade agreement with S Korea

President Donald Trump signed a revised free trade agreement with...

L-R: Jonathan Akeroyd, Donatella Versace, John D Idol. Courtesy: Rahi Rezvani

Fashion | On 25th Sep 2018

Michael Kors to acquire Versace; to be renamed Capri

Michael Kors Holdings Limited, a global fashion luxury group, has...

'India can take up lack of capacity in US, China markets'

Textiles | On 25th Sep 2018

'India can take up lack of capacity in US, China markets'

India can now take up the lack of capacity in the US and Chinese...

Interviews View All

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Cyril Pereira, Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Top executives, Textile industry

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Himanshu Jariwala,

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Mala Alwani,

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search