The Southern India Clothing Textile Factory Association Requires The Government To Restore The Ban On Cotton Exports

The South India Textile Mills Association (SIMA) demanded that the government immediately withdraw its decision to export cotton by license and suspend cotton exports before the coming year to protect millions of textile workers whose main raw materials are cotton.

J Thulasidharan, chairman of the association, said in a statement that the decision to cancel the suspension of cotton exports had a strong impact on the spinning industry.

This decision will result in the failure of the spinning enterprises due to the shortage of cotton supply within 2-3 months.

Small and medium sized spinning mills are in crisis due to serious shortage of electricity, high pportation costs, strong bank interest and high labor costs. The government's decision will further exert pressure on yarn prices. Therefore, exporters of garments, handlooms and power looms will face more difficulties.

Several industry associations have jointly requested that the government consider the needs of industry before deciding on the scale of cotton exports at the beginning of the year.

The government suspended cotton exports in April 30, 2010, but at that time 85 million 220 thousand packages had been registered, and the government allowed 73 million 790 thousand package ships to export, exceeding the 55 million package export amount stipulated by CAB.

He said: "the federal ministerial conference decided to suspend exports of cotton before September 2010, but then suddenly made a" U "word to decide that the free export of raw cotton completely ignores the interests of domestic industry.

He said that some people said that the inventory at the end of 2008-09 was 7 million 150 thousand packages, and the inventory to consumption ratio was 31.2%.

Stable cotton prices and corresponding yarn prices will make the spinning industry comfortable.

However, if the government cancels the decision to suspend the export of cotton, the stock will be reduced by 1 million 150 thousand more, which will run out of 3 million 500 thousand packages of all available final inventory.

The inventory to consumption ratio will drop to 14%, which is the lowest inventory level in India in recent years.

China always maintains the lowest 30 to 31 percent inventory to consumption ratio to ensure a smooth supply of industry, while maintaining competitive cotton prices.

He said that at the beginning of 2009-10 (October to September), the price of Sankar - 6 (Sankar-6) cotton varieties was 22300 rupees / candy (355 kg) and rose to 28500 rupees / candy by March 2010, because India had no plan to export raw cotton freely.