The Hindu : Tamil Nadu News : Apparel manufacturers seek ban on cotton export

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Tuesday, Nov 10, 2009
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Tamil Nadu

Tamil Nadu

Apparel manufacturers seek ban on cotton export

R. Vimal Kumar

Tirupur: With cotton prices increased substantially in the last few weeks, the apparel manufacturers/exporters in the Tirupur knitwear cluster are finding it hard to keep the prices of end products competitive.

Since cotton is the major raw material in the country’s knitwear industry, accounting about 60 percent of the fibre consumption, any price hike of it will have a cascading effect on the price of garments.

Various textile associations have now come forward with their representations to the Union Textiles Minister, Dayanidhi Maran, seeking a ban on export of cotton to save the manufacturers from the present crisis.

Curbing the spiralling hike of cotton prices, according to the exporters, is essential if they have to get a level playing ground to compete with their counterparts in China, Vietnam and Bangladesh, among other countries, in the global export market.

Reasons

Tirupur Exporters Association president A. Sakthivel said that increase in the minimum support price (MSP) of cotton by 43 percent between October 2008 and September 2009, when compared to the corresponding period in 2007-08, had resulted in the price escalation of raw cotton last year.

“This is continuing and the increase in cotton consumption coupled with the apprehensions of lower production made the price scale still higher during the last few weeks,” he pointed out.

He cited the example of Sankar-6 variety, the price of which increased by 10 percent over a month to now stand at Rs 25,000 per candy.

South India Hosiery Manufacturers Association (SIHMA) president A. C. Eswaran was also of the opinion that only the suspension of cotton exports like what implemented in the neighbouring countries like Pakistan and China could bring down the prices.

“The government should ensure that domestic consumption was comfortably met, which, in turn, will help the exporters give value addition and bring additional revenue to the country.”

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