Mills Weigh In On Indian Export Debate
April 12, 2011 By Seshadri Ramkumar
Texas Tech University, USA
The Southern India Mills’ Association (SIMA) Chairman has met with the Indian Prime Minister on cotton situation on April 9, 2011.
Mr. Manmohan Singh, the Prime Minister of India visited the textile city, Coimbatore on April 9th as part of an election campaign for the forthcoming State of Tamil Nadu assembly elections. Mr. J. Thulasidharan, Chairman of SIMA met the Prime Minister during his visit to Coimbatore.
Dr. K. Selvaraju, Secretary General of SIMA confirmed that the SIMA chairman Thulasidharan personally handed over the memorandum request to the Prime Minister on April 9.
SIMA told the Prime Minister that the raw cotton export should be permitted from India only after January every season. In addition, the spinning body is asking special assistance with regard to working capital such as the interest rate to be brought down to 7% from the current rate of 14 %, increasing the credit period from 3 months to 9 months and also reducing the margin money from 25% to 10%.
In the memorandum plea, the association has emphasized that the export of 5.5 million bales (170 Kgs each), which is the allotted amount for this current season, will result in cotton scarcity during the end of the current cotton season and the beginning of the next season. The association estimates that at the current consumption rate, an ending stock of at least 6 million bales (170 Kgs each) is needed which necessitates the immediate curbing of cotton exports from India till January 31, 2012.
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