New Delhi, Nov 29: Unlike textile industry's demand for outright ban on export of cotton, India's exporters body FIEO wants government to restrict its shipments to enable the country's textiles and garment exporters to maintain their overseas markets.
Federation of Indian Export Organisations (FIEO) president A Sakthivel appealed to government to allow annual export of 50 lakh bales of raw cotton with a monthly ceiling of 4 lakh bales. Textiles Minister Dayanidhi Maran has not accepted the exporters demand, while cotton growers want export of the raw cotton to conintue. Commerce Minister Anand Sharma said if the country has no exportable surplus of raw cotton there will be no out-shipments.
The exporters body said a controlled export of raw cotton will also ensure its regular supply to domestic textiles and garments manufacturers and enable them meet challange of competition in the international market.
Mr Sakthivel attributed the continuing decline in export of readymade garments to out-pricing of Indian products by exports from China, Sri Lanka, Bangladesh, Vietnam, and Turkey. Prices of woven cotton fabrics have increased by 15-20 per cent, while that of cotton yarn garments by 10-15 per cent, he added.
Exporters apprehend further increase in cotton prices in view of market reports that traders had purchased 20 lakh bales for exports. FIEO cautioned that the hike in prices will force spinning industry to close down many of their units affecting weaving units as well as end-use consumers such as fabrics, made-ups and garments exporters, which will have serious implications for employment as textiles is the largest employment provider after agriculture.
Cotton Advisory Board has projected a production of 373.5 lakh bales of cotton in October to September period this year against domestic demand of 305 lakh bales, leaving a surplus of 68.5 lakh bales.
Source : centralchronicle.com