India Textile Organization Says The Opening Of Cotton Export Quota Poses A Heavy Blow To The Textile Industry.

The government of India decided to put cotton exports in open cotton in the cotton year (October to September). Licence (OGL) under the management of the system, the India textile mill said it would be a serious blow to the textile industry. This decision is an immature decision. Urge The government has been allowed to export cotton since January.

The government announced that in the 2011-12 cotton year, which began in October 1st, the export of cotton will be managed under the OGL system and the president of the India Textile Mills Association (SIMA). S Dinakaran It will constitute a serious blow to the cotton textile industry. The Textile Industry Association urges the government to allow exports of cotton in accordance with the open general license only from January. If it is allowed to export cotton at the beginning of the year, it will impact the supply of cotton in the domestic market, while promoting Rise in price 。

The South India Textile Mills Association (SIMA) said that the decision to allow exports of cotton in 2010-11 years is an immature decision. It is announced that within the next 45 days, 5 million 500 thousand bales of cotton (170 kg / bag) will be allowed to export, which will stimulate cotton prices to record high. In just three months, cotton prices hit 63000 rupees / candy (about 356 kg) from 38000 rupees.

The association said it was worried that the government might expand the quantity of cotton exports and lead to cotton. shortage Textile mills purchase cotton at a price of 60000 rupees / candy. Subsequently, the price Plunge To 30000 rupees / candy, textile mills lost more than 60 billion rupees in just 4 months. The association is concerned that allowing cotton to export in the open general licence will lead to a repeat of what happened last year in India.