The Hindu Business Line : Textile trade seeks `clear' policy for cotton exports

THE Chamber of Textile Trade and Industry (COTTI) has urged the Union Textile Ministry to come out with a clear policy for promotion of cotton exports.

Although cotton export was brought under open general licence two years ago, cotton exporters are still finding it difficult to penetrate the international market due to non-availability of adequate quantity of quality cotton from domestic sources.

In fact, the Indian cotton prices for some variety are cheaper by almost 10 per cent compared to the same variety of cotton offered by major exporting countries such as CIS, West African and the US.

But exporters are unable to take benefit of lower prices due to quality problem, which has to be tackled right at the ginning stage.

Emphasising the need for modernisation of cotton ginning technology, the chamber said that freight equalisation scheme, as applicable to various agricultural commodities should be extended to cotton in order to make equal prices of all varieties of cotton all over the country.

This apart, private investors should be encouraged to create warehousing facilities in major sea and land ports.

A spokesman of COTTI said contrary to expectation that cotton prices in the international market should go down steeply due to bumper crop in India this year, prices improved considerably with the news that the crop in China has failed.

In fact, exporters were receiving fresh inquiries for Indian cotton from Bangladesh, China, Pakistan, Thailand, Indonesia, the Philippines, Vietnam and Sri Lanka.

Therefore, the chamber feels the government's intervention is required to improve the availability of quality cotton.

More Stories on : Cotton | Textiles | Exports & Imports

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