The South India Textile Mills Association Calls For A Resumption Of Cotton Export Ban.

Southern India Textile mill The SIMA asked the government to immediately rescind the decision to export cotton by license and suspend exports of cotton before the coming year to protect millions of textile workers whose main raw materials are cotton.

The chairman of the association, J Thulasidharan, said in a statement that the decision to cancel the suspension of cotton exports was correct. Spinning industry Form a violent impact. 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 transportation 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 allow Spinning industry Feel 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 30-35% inventory to consumption ratio to ensure stable industrial supply while maintaining competitive cotton prices.

He said that at the beginning of 2009-10 (October -9), the price of Sankar 6 (Sankar-6) cotton varieties was 22300 rupees / candy (355 kg) and rose to 28500 rupees / candy in March 2010, because India had no plan to export raw cotton freely.