Representatives of more than 10 textile industry associations in the State submitted a memorandum to Deputy Chief Minister M.K. Stalin here on Friday seeking restriction on cotton exports.
They also appealed to him to take up the cotton export issue with the Prime Minister.
Textile industry in the State accounted for over 40 per cent of the country's textile sector and unlimited cotton exports would hit the industry, leading to job losses, they said.
The Government should frame a cotton policy, ensuring benefits of home grown cotton to the domestic industry. Export of cotton to China, Pakistan and Bangladesh would give a competitive edge to the textile industries in these countries. Despite a bumper crop of 295 lakh bales in 2009-2010 in the country, prices of cotton were 50 per cent more than the Minimum Support Price. The handloom, powerloom and exporting units were unable to absorb the abnormal increase in prices.
The industry jointly demanded that only the exportable surplus estimated by the Cotton Advisory Board should be permitted for exports. They also sought registration of only those contracts that were for direct users, levy of Rs.10,000 export duty per candy of cotton, bringing cotton under the restricted export list, permitting exports only after January 2011 and withdrawing the export incentive for raw cotton.
