Industry associations often present a wish list to dignitaries. With top political leaders now canvassing, the associations are assiduously pushing their demands forward.

The Southern India Mills Association (SIMA), for instance, drew the attention of the Prime Minister, Dr Manmohan Singh, to the spiralling increase in the price of raw cotton. “Though the country has been producing surplus cotton, the entry of multinational cotton traders with money power consequent to the removal of cotton from the Essential Commodities Act and various trader-friendly policies posed a big challenge to the domestic industry. But for the cap on raw cotton export, the position would have been disastrous during the last two years,” the SIMA representation stated.

To sustain competitiveness of the Indian textile industry, the association has appealed that “no further cotton export should be permitted till end January 2012.”

The SIMA Chairman, Mr J. Thulasidharan, said: “The decision to export 55 lakh bales of cotton could create scarcity towards the end of the current season as the estimated cotton production dwindled from 329 lakh bales to 312 lakh bales. The closing stock is expected to fall to 27.5 lakh bales. This situation has pushed up cotton prices to unprecedented levels in the domestic market. Internationally, the stock-to-use ratio ranges between 38 and 50 per cent, but with 27.5 lakh bales, our stock-to-use ratio would be only 10 per cent, the lowest in the recent past. At the current consumption level, the stock level should be around 60 lakh bales. To save the industry from disaster, the government should restrain from permitting any further export of the raw material.”

Reverting to cost of funds, he said the mill sector should be provided with special working capital assistance for purchase of raw material at 7 per cent and 10 per cent margin money against the present level of 14 per cent interest rate, three months credit and 25 per cent margin money.

Knitwear exporters in Tirupur appealed to the Prime Minister to bail the dyeing and bleaching units from their plight and help reopen these units. “The Central Government can file an affidavit in the Supreme Court as an interim relief and seek grant of extension of time by six months to achieve zero-liquid discharge and consequently permit reopening of these units,” the Tirupur Exporters Association President, Mr A. Sakthivel, said in a statement.

The association has appealed that a separate chapter on Base Rate System for exports be considered and the pre-shipment and post-shipment credit be given at the base rate itself.

The association has also sought extension of 2 per cent interest subvention to the knitwear garment sector for one more year.

While going with the SIMA's stand on restricting export of cotton, the knitwear sector sought restriction and calibration of cotton yarn export and imposition of a 15 per cent duty on cotton yarn exports to availability and curb any further increase in the price of cotton yarn.

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