Formulate an effective network to reduce cost: SICA
South India Cotton Association has asked the Union Textile Ministry to prevail upon the transport ministry and arrive at a "hybrid transportation concept" and formulate an effective and huge network of Indian railway, roadway and waterway.
By PTI |
COIMBATORE: South India Cotton Association on Sunday asked the Union Textile Ministry to prevail upon the transport ministry and arrive at a "hybrid transportation concept" and formulate an effective and huge network of Indian railway, roadway and waterway.
In his address to the 28th Annual General meeting of the association, SICA president C Soundara Raj said the cost of transportation of cotton bales from various ginneries to spinning mills in India was at present exorbitantly high.
Cotton transported from Gujarat to Coimbatore incurred about Rs 67,500 as freight for transporting 150 bales, whereas the sea freight for the same quantity from Indian port to various export destinations such as China, Indonesia, Thailand, Taiwan and Vietnam on average cost around 250 USD, about Rs 10,000.
The cost was alarmingly high when cotton was transported from Haryana and Punjab, where the cost reached as high as over Rs 120,000, he said.
"This lopsided transportation costs has on several occasions made spinning of Indian cotton expensive in India than spinning Indian cotton at an overseas destination."
Seeking formulation of an effective network, so that the cotton may be charged at reduced cost as a priority commodity, he said container loads should be moved by Railways at the rates being charged by shipping companies for International transport.
This called for an urgent consideration as a way to reduce the cost of input and help in meeting the firming of rupee, Soundara Raj said.
In his address to the 28th Annual General meeting of the association, SICA president C Soundara Raj said the cost of transportation of cotton bales from various ginneries to spinning mills in India was at present exorbitantly high.
Cotton transported from Gujarat to Coimbatore incurred about Rs 67,500 as freight for transporting 150 bales, whereas the sea freight for the same quantity from Indian port to various export destinations such as China, Indonesia, Thailand, Taiwan and Vietnam on average cost around 250 USD, about Rs 10,000.
The cost was alarmingly high when cotton was transported from Haryana and Punjab, where the cost reached as high as over Rs 120,000, he said.
"This lopsided transportation costs has on several occasions made spinning of Indian cotton expensive in India than spinning Indian cotton at an overseas destination."
Seeking formulation of an effective network, so that the cotton may be charged at reduced cost as a priority commodity, he said container loads should be moved by Railways at the rates being charged by shipping companies for International transport.
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This called for an urgent consideration as a way to reduce the cost of input and help in meeting the firming of rupee, Soundara Raj said.
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