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THE TEXTILE MAGAZINE
AUGUST 2011
He has further said that unplanned
export of cotton would lead to
hoarding and speculation resulting in
steep increase in cotton and cotton
yarn prices, which cannot be passed
on to the handloom, powerloom and
garmenting sectors, resulting in chaos
in marketing and industrial unrest as
happened at the beginning of the cur-
rent cotton season.
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the surplus cotton projected by the
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lowed under OGL with effect from
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during the beginning of the season.
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should give preference only to ac-
tual consumers and not traders in or-
textILe SCene
der to avoid speculation over cotton
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ing 10 lakh bales as buffer stock to
feed small and medium spinning mills
throughout the season as these mills
do not have holding capacity to store
more than two months stock.
Around 60 per cent of the cotton
produced in the country is above
average quality and, therefore, the
policy should be framed in such a
way that Indian spinning mills do not
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Working capital assistance to textile
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the international price for them dur-
ing the peak season.
He fears that cotton export under
OGL would also encourage the few
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jack up prices, thereby making even
100 per cent polyester and polyester
cotton textile products costlier for the
people below the poverty line, who
are the ultimate consumers. Hence
the need to provide facilities of hedg-
ing.
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stated that around 80 per cent of the
cotton produced in the country is
consumed by the domestic industry,
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sential to sustain the cotton area and
ultimately the income for the Indian
farmers. It is necessary, therefore, to
take a cautious decision while permit-
ting cotton export under OGL after
fully protecting the interests of the
mother industry.