India SIMA: Seeking More Ways To Control Cotton Prices

The southern India Textile Mills Association (SIMA) asked the government to develop more ways to control cotton prices.

J. Thulasidharan, vice president of the association, said that the central government recently cancelled 10% of import tariffs and 1% of export incentives, which is only a drop in the bucket for India spinning mills.

Cotton prices fell by 500 rupees to 750 rupees per candy. Cotton prices in India are still higher than imported cotton prices.

Although the loss of textile factories is huge, they can not completely shift the price of cotton.

In some textile mills, the utilization rate of machines has been reduced by 30%, thus increasing production costs.

Cotton prices increased by 17% during the cotton season this year, and cotton prices almost increased by 39%.

The price of cotton in India is between 19000 rupees per candy and 30000 rupees, and the price is very abnormal.

He said that the difficulties of India's cotton textile industry have not been completely solved.

He said that the government should ban exports of cotton by December 31, 2008, and that all cotton exports in the future should be passed through the India Cotton Corp or other state alliance organizations.

The central government should impose a 5% tariff on cotton exports.

Ensure that the inventory to consumption ratio is 40%, and the operating capital margin should be reduced from the current 25% to 10%.

The operating capital interest rate should be 7%, which is the same as agricultural loan.

Cotton exports to nearly 10 million bales this year, and the government's initial estimate is only 6 million 500 thousand packages.