SIMA-INSA push for cost-effective transportation of cotton

Two industry bodies have appealed to the Centre to facilitate cost-effective transportation of cotton and textile goods among five major cotton and textile goods manufacturing states to sustain their global competitiveness.
The Southern India Mills Association (SIMA) and Indian National Shippers' Association (INSA) have jointly urged the Centre to take a favourable decision on their plea for concessions in the coming budget so as to ensure cost effective transportation among Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh and Telangana.
A right decision in this direction would make the "Make in India" programme of the Prime Minister a reality by making both the Shipping and textile industries play a greater role, SIMA Chairman T Rajkumar said in a statement here today.

He said SIMA extended its support to the demand of INSA for removal of restrictions on number of moves in ports (Tuticorin) so that greater efficiency achieved at that Port can translate into better logistics services for SIMA members.
A joint memorandum had been sent to the Shipping and Textiles ministers two days ago, seeking certain concessions and relaxations in the budget for the Indian shippers so as to bring down the cost of cotton transport on par with foreign shippers, Rajkumar said.
It was also appealed to provide duty free bunkers for Indian flag vessels for carrying cotton and textile products on Indian coasts, he said.

Tamil Nadu accounts for one third of the textile business and the mills in the State accounts for 44 per cent of the total spinning capacity of the country and 60 per cent of its yarn exports, earning a total foreign exchange of over Rs. 75,000 crore.

However, due to the 'steep' increase in lorry freight, transportation of cotton by road had become unviable. The current lorry freight for transporting cotton from Gujarat to Tamil Nadu was Rs 865 per bale (of 170 kgs), he said.
Indian vessels charge Rs 672 per bale for transporting the same which is higher than the fare of Rs 433 from West Africa to Tamil Nadu.

Currently, the mills were spending Rs 85,000 to bring 100 bales of 170 kgs by lorry from Gujarat to Tamil Nadu which works out to around Rs 5.30 per kg whereas China is able to transport 150 bales of cotton per 40 foot container from Gujarat to Shanghai at 100 USD to 350 USD using empty cargo vessels returning in the same route, Rajkumar pointed out.