The domestic textile industry has expressed concern over increase in cotton prices during the last two days.
The price of Shankar-6 variety of cotton was quoted at Rs.40,500 a candy on Wednesday as against Rs.39,000-39,500 a candy on Tuesday.
D. K. Nair, Secretary General of Confederation of Indian Textile Industry, said that one of the reasons for the increase in prices was said to be incentives expected by exporters for cotton exports.
Incentives for cotton exports would make the Indian cotton available to competing countries at a lower price.
He suggested that the Government should levy freight equalisation charges on cotton exports as the transport cost of Indian cotton from Gujarat to China was lower than the cost of transporting it from Gujarat to Tamil Nadu or Punjab.
S. Dinakaran, Chairman of Southern India Mills' Association, said the Government should ensure a level-playing field for the domestic textile industry.