Punjab garment makers rap govt's cotton export move

The spurt in prices of cotton is giving a hard time to garment and yarn manufacturers in this region. The garment manufacturers have strongly criticised the central government’s decision to allow exporting 5.5 million bales (a bale is 170 kg) of cotton.

The price of a maund (37.3 kg) of cotton in Punjab has touched Rs 3,800, compared to Rs 2,400-2,500 last year.

Sandeep Jindal, managing director of Jindal Cotex, said allowing liberal export of cotton despite rise in domestic consumption is the major cause.

Rakesh Rathi, president, North India Cotton Association , says the spurt in prices this year has three reasons.

One, inventories this year have been low compared to last year, on account of buoyancy in the global market. As against seven million bales of carry forward stock last year, this year it was four million bales.

Another reason has been floods in Pakistan, affecting a third of the cotton area there. The third reason has been late arrival of the crop this year.

Sanjeev Gupta, managing director of Kuvam International Fashion Ltd, also criticised the government’s move, saying the rise in prices would definitely impact those of apparel.