Textiles industry today expressed reservations over government's decision to ban cotton exports, saying domestic millers have enough stock to meet requirement.
The Confederation of Indian Textile Industry (CITI) said it is surprised by the move as there is a demand slowdown both in domestic and global markets.
"The ban on natural fibre exports has surprised us. We had not asked the government to intervene and ban the exports. The industry has enough supply of cotton to meet the present requirement, since there is not much demand both in domestic and global markets," CITI Secretary General DK Nair said.
According to the Textiles Ministry, till February 2012, 91 lakh bales (170 kg each) were shipped against the export estimates of 84 lakh bales for the current cotton season (October to September). It feels that at this rate the exports would reach 100 lakh bales by mid-March 2012.
The government banned the cotton exports till further notice, amidst fear of shortage of the natural fibre in the domestic market and apprehensions of hoarding in warehouses abroad.
However, Apparel Export Promotion Council (AEPC) welcomed the move to prohibit these exports stating that value-added items need to be promoted to compete with neighbouring countries like Bangladesh.
"The yield is higher on value-added exports like garments than raw-material [cotton]. This step will ensure smooth supply of raw-material to mills and thus give tremendous fillip to apparel exports in the future," AEPC Chairman A Sakhitvel said.
Cotton output has been revised downwards to 340 lakh bales for the current season from 345 lakh bales in line with the agriculture ministry's projection.
The CAB, in January, had pegged domestic consumption of the natural fibre at 260 lakh bales for this year compared to 240 lakh bales in the last season.
