The predominantly cotton based textile industry in South India, particularly the textile mills in Tamil Nadu import significant volumes of West African cotton to manufacture knitted garments. The congestion in ports currently being used has prompted the association to explore the possibilities of utilizing Mangalore port which has got excellent warehousing facilities particularly for the benefit of the small and medium scale spinning mills.
Mr.T.Rajkumar, Chairman, The Southern India Mills’ Association (SIMA) has stated recently that the association along with members of South India Spinners Association (SISPA), traders and liners had a detailed discussion at SIMA premises on 10th April 2015 with Mr. P.C.Parida, Chairman, Mangalore Port Trust and their officials. He said that the Mangalore Port currently handles coffee, cashew, coal, timber and oil and the port authorities have evinced interest in stocking imported cotton in their warehousing facilities at a highly economical rate. The SIMA chairman said that the association has requested the Chairman of Port Trust to extend customs free bonded warehouse for cotton without attracting any tax or levy as in Malaysian Port so that the traders could store the imported cotton and supply to the small and medium spinning mills all over South India particularly Tamil Nadu which accounts for 44 per cent of the total spinning capacity in the nation. He said that such a facility would also enable the traders to return the unsold cotton to the original destination without additional cost.
The SIMA chief further stated that Mangalore Port Trust Chairman has assured to take all necessary steps to provide bonded warehouse after getting permission from the central government. He said the port handling charges, wharfage and demurrages are comparatively much lower in Mangalore Port. It is said that the port authorities have invited the office-bearers, traders and liners to visit the port so that they could work with the association for mutual benefits. He has opined that the effort would facilitate manufacturing of value added garments out of West African cotton and is a right step towards achieving the vision of ‘Make in India’ programme of the Hon’ble Prime Minister and foster global competitiveness of SMEs.