Stung by the rise in the price of cotton yarn, home textile exporters have called upon the Union government to completely ban export of waste cotton that forms the raw material for a majority of yarn varieties being used in the home textile sector. Besides, they have urged the Centre to calibrate export of cotton after taking into consideration the consumption by the local export units that are hurt by the fluctuating price of yarn over the past two years.
Speaking on behalf of the Karur Textile Manufacturer Exporters' Association, its president M.Nachimuthu has said that the Centre should also take immediate steps to bring down the yarn prices by at least 25 per cent. The Central government should not take any step towards liberalising cotton export as that would push up yarn prices adversely affecting the textile industry.
In fact, the Centre should resort to calibrated export of cotton that was found to be surplus after taking into account the requirements of the local export industry, Mr.Nachimuthu pointed out in a memorandum to the Union Commerce and Industry Minister, a copy of which he released to the media here on Saturday.
The Centre should make a realistic assessment of the cotton production, units' requirements for the season and the year ahead and allow for export of only surplus cotton to keep the yarn prices under a tight leash.
Besides, the association has called upon the Centre to ban altogether the export of waste cotton, levy exemplary duties to discourage cotton export, formulate a mechanism to regulate the yarn prices and provide diesel at subsidised price to the home textile units to help them tide over the crisis.
Mr. Nachimuthu observed that the industry was facing a grave situation wherein remaining competitive in the international market has taken a great effort and several factors have been upstaging the calculations of the exporters over the past two years. The Centre and the State governments had to intervene effectively to prevent further decline of the fortunes of the home textile industry.
To that end, the association planned to meet the Union and State ministers and convey to them first hand the travails of the home textile exporters so that they could initiate mitigating steps, Mr. Nachimuthu pointed out.
