CITI urges traders, ginners to release cotton stocks

NEW DELHI: The Confederation of Indian Textiles Industry ( CITI) has urged traders and ginners to release their existing cotton stocks in the market to avoid artificial shortage of the natural fibre in the domestic market.

"It seems traders and ginners are hoarding their existing stocks and are not selling them to create an artificial shortage in the market. Therefore, we request the traders and ginners to release their stocks and ensure smooth trade flows," CITI Chairman S V Arumugam said in a statement here.

Besides, Arumugam stated that he has requested the associations of mill owners to advise their members to accelerate buying of cotton from both farmers and traders.

The Commerce Ministry on March 5 banned cotton exports, a decision opposed by the Agriculture Minister Sharad Pawar who said it was taken without his approval.

Prime Minister Manmohan Singh had also called a Group of Ministers, headed by Finance Minister Pranab Mukherjee to review the ban urgently.

Explaining the reasons behind export ban, the Textiles Ministry had said that the country had already shipped 94 lakh bales (170 kg each), 10 lakh bales more than the exportable surplus, reducing the domestic availability.

Meanwhile, Commerce Secretary Rahul Khullar said that the government is considering lifting the ban on cotton exports.