Cotton production has dipped, consumption too has risen: SIMA

With cotton production for 2010 -11 estimated at 309 lakh bales and consumption about 285 lakh bales, any further export would seriously affect the entire textile value chain, Southern India Mills Association (SIMA) said here on Saturday.

The Cotton Advisory Board (CAB) at its January 6 meeting has overestimated production and underestimated consumption, SIMA Chairman, Mr J Thulasidharan said in a statement here.

As against CAB estimates, Northern crop would be less than 40 lakh bales, Gujarat’s less than 100 lakh and Maharashtra 80 lakh bales as against estimated 92 lakh bales, he said.

Based on the latest information from South India Cotton Association and SIMA members, estimated cotton production would be around 309 lakh bales, he claimed.

On consumption, Mr Thulasidharan said the Textile Commissioner’s office has already estimated it at 275 lakh bales. However, non-submission of data by some mills and also capacity being added in the spinning sector, the requirements, including non-mill consumption, would exceed 285 lakh bales.

Viewing production and consumption data, any further export would seriously affect the entire textile value chain, he said, adding that even with current cotton position, mills would face cotton shortage from July, resulting in abnormal increase in yarn prices, ultimately affect the common man, he said.

Mr Thulasidharan urged the textile ministry to take up the matter with Commerce and Agriculture ministries and restrict the cotton export at 55 lakh bales. The permitted quantity of cotton export has already exceeded by two lakh bales, the quantity decided by the Group of Ministers, he added.

COMMENT NOW