The Hindu Business Line : ‘Formulate fibre policy to improve cotton trade’

Delivering the special address at the 29th annual general meeting of the South India Cotton Association, he said the country has harvested a bumper crop for the fourth year in a row, registering 31.50 million bales of 170 kg each in 2007-08 and expecting it to rise marginally to reach 32 million bales in 2008-09.

“The quality of Indian cotton is better due to use of Bt seeds and better ginning practice. Exports have started to play an important role. In such a scenario, there is need for a fibre policy,” he reiterated.

Cotton conquests

“Six years ago Indian cotton was quoted at 5 to 6 cents lower than West African cotton and about 10 to 20 cents lower than American cotton. We have come a long way. Today, our cotton is widely accepted the world over and the price gap with other origins has come down. Due to cheap sea freight, the landed cost of cotton is cheaper for mills in South East Asia than Indian mills. Accessibility by land for Pakistan and Bangladesh makes certain varieties cheaper for mills there,” he said, and suggested the need for a public-private initiative to bring cotton to this part of the country by rail.

SICA, he said, could take up the issue with the Government, as more than 70 per cent of textile mills were located here and transportation costs were soaring to unaffordable levels.

Asked if exports should be banned, he said: “Exports are good for the country. We need a fibre policy.”

When asked if the fall of US investment banking companies, particularly those that traded heavily in the New York futures, would have an impact on cotton futures here, he said: “It is good for us. Prices will come down and fundamentals will drive the market. This is good for the industry.”

More Stories on : Textiles | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page