Spinners in India Demand Postponement of Cotton Exports

The Southern India Mills’ Association (SIMA) is applying pressure to limit cotton exports under Open General License only after January 1, 2012. Indian officials only recently lifted cotton export restrictions for the remaining two months of the current season, which ends in September 2011.

On August 2, J. Thulasidharan, chairman of the Coimbatore-based SIMA, appealed to the Prime Minister to ensure a level playing field for the Indian cotton spinning sector before making any long-term decision about allowing cotton exports under Open General License.

In his statement, he insisted that the country’s spinning industry needs a closing stock of at least 2.5 months to be competitive with other exporting countries, and asked the government to develop policies that combat volatility and provide facilities for hedging. He pointed out that the Indian cotton textile industry provides direct and indirect employment to 90 million people.