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Spinning Body Visits Indian Prime Minister

Spinning Body Visits Indian Prime Minister

Manmohan Singh, prime minister of India, visited Coimbatore, the textile city, on April 9 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.

Secretary General of SIMA Dr. K. Selvaraju, in a telephone conversation, confirmed that the SIMA chairman Thulasidharan personally handed over the memorandum request to the Prime Minister on Saturday, April 9.

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SIMA has pleaded 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 percent from the current rate of 14 percent increase the credit period from 3 months to 9 months and also reduce the margin money from 25 percent to 10 percent.

In the memorandum plea, the association has emphasized 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.

In addition to the SIMA plea, according to media reports, the Prime Minister in the public rally on April 9 has said that his government wants to find a viable solution to the pollution problems facing the dyeing units in Tirupur, the hosiery town in South India.
 

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Anonymous says:

The spinning people are always demanding export Ban only to protect there profits .Whenever there is ban in Export they are quoting much lower price for the domestic cotton as compared to the prevailing price in International Market . They should adopt practices to cover there raw material in time . Govt should give incentives to them to meet the situation without Banning the export to protect the interest of the farmer by making a balance in the price of Domestic and International Market .

Anonymous says:

Completely agree with you Arun. PM should remember that he is not protecting the Mill’s interest(by putting a ban on exports) at the expense of the farmers of India. E.g recently in mid march 2011 to end of the month the cotton prices were around RS 75,000 (Shankar 6) per candy 356 kg in the international market and the same cotton in Indian domestic market was being sold for Rs 55,000 to Rs 60,000. This is a big gap. The ministry should consider these facts before banning cotton exports from India.

Anonymous says:

i am fully agree with statements by both the gentleman.but one should calculate raw material cost, conversion cost and rulling prices of cotton yarn in the domestic market,lets take a simple example of 34’s karded weft cotton yarn by considering cotton price @rs 60,000 per candy, the cost of produt to the mill calculated @ rs 245-250 per kg,and selling rate per kg in todays yarn market is about @rs 215-220 per kg.as spinning mills are making loss per kg of yarn @ rs 25-30. 25000 spindle capacity mills are producing approximate 2,00,000 kgs yarn per month and as per the above fact of calculation mills are making net loss of rs 50-60 lacs per month,if it remians contineu mills dont have any other alternatives than closing the doors to such huge team of employees,(it is please be noted before taking any dicession)

Anonymous says:

The spinning people are always demanding export Ban only to protect there profits .Whenever there is ban in Export they are quoting much lower price for the domestic cotton as compared to the prevailing price in International Market . They should adopt practices to cover there raw material in time . Govt should give incentives to them to meet the situation without Banning the export to protect the interest of the farmer by making a balance in the price of Domestic and International Market .

Anonymous says:

Completely agree with you Arun. PM should remember that he is not protecting the Mill’s interest(by putting a ban on exports) at the expense of the farmers of India. E.g recently in mid march 2011 to end of the month the cotton prices were around RS 75,000 (Shankar 6) per candy 356 kg in the international market and the same cotton in Indian domestic market was being sold for Rs 55,000 to Rs 60,000. This is a big gap. The ministry should consider these facts before banning cotton exports from India.

Anonymous says:

i am fully agree with statements by both the gentleman.but one should calculate raw material cost, conversion cost and rulling prices of cotton yarn in the domestic market,lets take a simple example of 34’s karded weft cotton yarn by considering cotton price @rs 60,000 per candy, the cost of produt to the mill calculated @ rs 245-250 per kg,and selling rate per kg in todays yarn market is about @rs 215-220 per kg.as spinning mills are making loss per kg of yarn @ rs 25-30. 25000 spindle capacity mills are producing approximate 2,00,000 kgs yarn per month and as per the above fact of calculation mills are making net loss of rs 50-60 lacs per month,if it remians contineu mills dont have any other alternatives than closing the doors to such huge team of employees,(it is please be noted before taking any dicession)