South Indian Textile Association asks the government to resume the decision to ban cotton exports

The South Indian Textile Mill Association (SIMA) asked the government to immediately withdraw its decision to export cotton with a permit and suspend cotton exports before the next year in order to protect the interests of millions of mill workers who use cotton as their main raw material.

J Thulasidharan, chairman of the association, said in a statement that the decision to lift the suspension of cotton exports has had a fierce impact on the spinning industry. This decision will lead spinning companies to fail due to the lack of supply of cotton within 2-3 months.

The small and medium-sized spinning mills have been in crisis due to severe power shortages, high transportation costs, strong bank interest rates, and high labor costs. This decision of the government will further exert pressure on the yarn prices. Thus, clothing and hand The enterprise exporters of rotary loom and power loom will face more difficulties.

Several industry associations have jointly requested that the government should consider the needs of the industry before determining the scale of the cotton export at the beginning of the year. The government suspended cotton exports on April 30, 2010. However, 85,220,000 bales had already been registered at that time, and the government allowed exports of 73.79 million packaging vessels, exceeding the CAB's export volume of 55 million bales.

He said: "The Federal Ministerial Conference decided to suspend cotton exports before September 2010, but then suddenly made a "U" decision that the raw cotton free exports completely ignore the interests of domestic industries."

He said that some people said that the ending stock for 2008-09 was 7.15 million bales, and the inventory-to-use ratio was 31.2%. Stable cotton prices and corresponding yarn prices will make the spinning industry feel comfortable. However, if the government cancels its decision to suspend cotton exports, inventory will be reduced by another 1.15 million bales, which will exhaust 3.5 million bales of all available ending stocks. The stock-to-use ratio will drop to 14%, which is India's minimum inventory level in recent years. China has always maintained a minimum inventory-to-use ratio of 30-35% to ensure a stable supply of industry while maintaining competitive cotton prices.

He said that at the beginning of the 2009-10 (October-September), the price of the Sankar-6 cotton variety was 22,300 rupees/candy (355 kg), which rose to 28,500 rupees/candy in March 2010. It is India that has no plans to freely export raw cotton.

Author: Asi ( "26361,28023,32418") Cao Hai Hung