Cotton mills go slow on using Kochi port for trade

The increased prices for imported cotton seem to have prompted the Southern India Mills’ Association to go slow on its plan to facilitate import and re-export of containerised cotton through the Kochi Port.

“Right now the market is not conducive due to high international prices vis-a-vis domestic. It is expected to achieve a price stability in the next 3-4 months and imports will happen at this point of time,” G Radhakrishna, President, Coimbatore Cotton Association, said.

“Either local prices have to go up to match international prices, or global rates should come down to match Indian prices. We believe that the price balance will be achieved by April-May for the imports to be concentrated,” he told BusinessLine .

The international cotton prices are now at ₹42,500 per candy delivered at Indian port, while the domestic price is around ₹38,200, he said.

However, he added that the association has started bringing cotton to Kochi through coastal container route from Gujarat utilising the facilities at ICTT Vallarpadam. “We are moving some containers to Kochi meant for the spinning mills located in Tirupur, Coimbatore, Salem, etc., from the western part of the country along with Tuticorin Port that caters to the mills in Southern Tamil Nadu,” he said adding that the first consignment of 50 containers of cotton bales have been brought from Mundra and Pipavav last week and more such shipments are lined up for the coming months.

Given the proximity of the Kochi Port to spinning mills in Coimbatore, SIMA and Indian Cotton Federation is toying up with the idea of importing and re-exporting of cotton through Kochi. Besides offering cost advantage, the closing down of Walayar check post after GST will also be an added advantage to them in ensuring faster movement of the raw material to the production units in the region.

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