With the Union Government deciding, on Monday, to revoke the suspension of new registrations for cotton exports, the Southern India Mills' Association has said in a release here that the cotton export policy and the current cotton stock position has come as a rude shock to the domestic textile industry.

Improved power supply, expected in Tamil Nadu from May, will lead to higher production in textile mills and cotton consumption will also go up. China has built a huge stock by importing cotton from India and will be able to meet the international demand for cotton yarn. Though India has surplus cotton, domestic mills are likely to face shortage of the raw material, according to the association Chairman S. Dinakaran.

Chairman of Confederation of Indian Textile Industry S. V. Arumugam told The Hindu that mills would have to import cotton if there was a shortage. With the dollar becoming stronger, import of cotton would be expensive, he said.

Keywords: cotton shortage

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