SIMA asks Centre to check cotton export

SIMA asks Centre to check cotton export

COIMBATORE: With the Cotton Advisory Board estimating a record and bumper cotton production of 315 lakh bales in the 2007-08 season, the Southern India Mills' Association (SIMA) today appealed to the Centre to immediately intervene and take necessary steps to ensure Indian textile industry derived benefit out of the home grown cotton.

Unlike previous years, this year many multi-national cotton traders have entered the Indian market and dominated the purchase from the beginning of the season. They have covered all good quality cotton not only for export purpose but also for selling in the domestic market, SIMA Deputy Chairman J Thulasidharan said in a statement here.

Though the spinners, in today's scenario, were ready to pay the price, the traders are speculating the prices and refusing to sell the cotton to domestic spinners, he said.

Since China was facing shortage, the multi-nationals have even speculated international cotton prices by covering major quantity of Indian cotton.

Thulasidharan appealed to the Centre to ensure adequate availability of good quality cotton and allow export of only the balance quantity, since the Board has estimated to export 85 lakh bales as against 47 lakh bales exported last year.