Icmf Advocates Caution On Raw Cotton Exports

The Indian Cotton Mills Federation (ICMF) has expressed concern over the governments decision to allow export of seven lakh bales of raw cotton and has advocated a cautious approach.

ICMF, per se, is not against export of cotton. However, the quantity and timing of export should be such that it will not put the interests of domestic users in jeopardy, secretary general, P M Gajaria, said in a letter to Union textiles secretary, Prabhat Kumar.

Expressing concern over the announced of the quota prior to the new cotton season, he said, though the south-west monsoon this year had been by and large satisfactory, it was reported to be inadequate in major cotton growing tracks of Vidarbha in Maharashtra and certain parts of Andhra pradesh and Karnataka.

The Cotton Advisory Board (Cab), which met at Mumbai had refrained from making any estimate about the new cotton crop. However, at the recent National Conference on Agriculture, experts had said the kharif cotton crop would be six lakh bales (of 170 kg) less this season, the ICMF secretary general said.

Cotton prices had been buoyant during the last six months with rates in domestic market rising by Rs 2500 to Rs 3600 a candy (of 335.4 kg each), while the arrivals had also been delayed owing to unseasonal rains and inundation of fields in some parts of Punjab, he added. Under such situation, allowing large quantity for exports could escalate the prices further and in turn lead to rise in cotton yarn production prices thus affecting millions of handloom and powerloom weavers besides hosiery workers, the ICMF secretary general said.

ICMF secretary general P M Gajaria says that allowing a large quantity for exports could further escalate prices which, in turn, could lead to a rise in cotton yarn prices thereby affecting millions of handloom and powerloom weavers besides hosiery workers