Indian Spinning Industry Pleads to Curb Further Cotton Exports
April 7, 2011 The Southern India Mills’ Association (SIMA) has urged the Prime Minister of India to ban exports of raw cotton till January 2012.
Sources have said that export quotas could be increased by 1.5 million bales–to a total of 7 million 170 kg bales–for the cotton season ending in September. In response, J. Thulasidharan, chairman of SIMA, wrote to India’s Prime Minister and the Cabinet Ministers of Finance, Commerce & Trade and Textile,s urging them not to allow any further cotton exports.Dr. K Selvaraju, secretary general of SIMA, said that India’s spinning industry will face a shortage of 2 million bales of cotton during the tail end of this cotton season, even with the current export limit.
In his letter to the Prime Minister, Thulasidharan insisted that the government maintain a closing stock of at least 5.5 million bales for this season. On Feb. 25, India’s Cotton Advisory Board has estimated the closing stock for this season to be barely half that amount (2.75 million bales). Thulasidharan said that allowing further exports would result in the closure of large number of spinning mills between July and October. He added that the spinning industry is already suffering due to enormous inventory of cotton yarns and poor upstream demand.
A cotton procurement executive from a textile conglomerate who wishes to remain anonymous said that the increased export level might be a bonus for this year, and that it is more than mere speculation at this point.
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