The Hindu : Front Page : Tamil Nadu suggests quantitative restriction on export of cotton

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Tuesday, Jun 24, 2008
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Tamil Nadu suggests quantitative restriction on export of cotton

T. Ramakrishnan

To make available reasonable quantity of cotton for domestic market

Karunanidhi writes to Manmohan
Says spinning mills facing shortage

CHENNAI: Concerned over the continued rising prices of cotton and yarn, Tamil Nadu has suggested to the Union government to introduce the system of quantitative restriction on export of cotton annually.

Chief Minister M. Karunanidhi, who made this suggestion in his letter to Prime Minister Manmohan Singh last week, urged Dr. Singh to advise the Finance and Textile Ministries to impose the restriction on the export of cotton up to 75-80 lakh bales. This would ensure the availability of reasonable quantity of cotton for the domestic market, Mr. Karunanidhi argued in his letter, which was the second communication addressed to Dr. Singh in a month. According to an official, Tamil Nadu is among the worst affected by the price factor, as the State accounts for nearly 1,250 spinning mills out of about 3,040 mills in the country. Its requirement is around 47 per cent of the country’s total requirement of 240 lakh bales. Karur is one of the specialised export centres in the country, just as Kannur in Kerala and Panipat in Haryana. It has been exporting made-up items by engaging around 75,000 people.

Portraying a grim picture, Mr. Karunanidhi cautioned the Prime Minister that with the rising prices, there was even a likelihood of closure of textile mills and the consequent problem of unemployment of weavers. In Tamil Nadu, about 15 lakh people were dependent on this industry for their livelihood.

Quoting Cotton Advisory Board’s data, the Chief Minister pointed out that of 325 lakh bales of cotton production registered during 2007-2008, the quantity available for the market was around 240 lakh bales. Against the export of 58 lakh bales during 2006-2007, the figure of exports touched 85 lakh bales in 2007-2008. Spinning mills in the State were facing cotton shortage though there was a reasonably good crop this year, he said.

[The official says the season for cotton production is October-September. As three more months are to go for the end of the season, the export is likely to cross over 100 lakh bales this time].

In his previous letter, the Chief Minister referred to the adverse impact of the appreciation in the value of Rupee on the textile industry and 15 per cent increase in the prices of yarn.

To alleviate the problems of the textile sector, the State government removed sale tax on hank yarn, besides providing free power supply up to 500 units bi-monthly.

On May 16, textile mills observed a State-wide strike on the issue of growing prices. Karur, a major export centre, was the focal point of the strike.

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