subject: Sima Seeks Ban On Raw Cotton Exports [print this page] The Southern India Mills Association (SIMA) in Coimbatore has urged the Prime Minister, Dr Manmohan Singh to impose a ban on cotton exports from India to provide the textile sector, including SMEs a much-needed respite, which are suffering due to soaring cotton prices.
Unreasonable surge in cotton prices during the current season has put the small-scale textile traders under tremendous pressure as they are being required to pay high prices for procuring raw cotton, saidNitin Maheshwari, proprietor of Ambika Synthetic Mills, a small-sized garment manufacturing and exporting mill in Kolhapur, Maharashtra.
The SIMA has attributed the abnormal increase in cotton prices to the dominance of multinational cotton traders in the spot market. It called for the formulation of an interim Cotton Policy to safeguard the future of the industry.
Exports should be suspended as higher booking of raw cotton by overseas buyers for imports has catapulted commodity prices to historical highs, said Prakash Bhatnagar, proprietor of Cotton Trading Agency, a small-sized cotton trading unit based in Kolkata.
J Thulasidharan, chairman of SIMA, has sought the PMs intervention to suspend cotton export registration till May 2010.
by: David Parks
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