Ginners want cotton export under OGL

Representatives of cotton ginners from seven of the cotton growing states have decided to submit a memorandum to the central government for their demand regarding allowing additional cotton exports in the current season and putting cotton exports under the open general licensing (OGL).

The All India Cotton Ginners's Association had organised a meeting of its core committee in Ahmedabad on Wednesday. The ginners have decided to file a memorandum to the prime minister and agriculture minister demanding additional cotton exports to the tune of 2 million bales (a bale= 170 kg).

The ginners are also demanding to put the fibre commodity in open general licensing (OGL) for exports.

 

"We have decided to demand 2 million bales of cotton export permit exclusively for cotton ginners. Also, we will make a representation to the prime minister's office to prepare a long-term export policy for cotton exports," informed a committee member who attended the meet. The memorandum will be submitted to the PM in a week's time.

According to ginning industry sources, the cotton demand in the domestic market has gone down since March this year.

"In March the cotton demand stood at 2.3 million bales per month, which fell to 2.05 million bales in April, 1.8 million in May and subsequently 1.6 million bales in June. This is making the situation worse for the ginning industry as it also adversely affects domestic cotton prices," informed a source.

The industry is concerned about the possibility of large volumes of carryover stocks in the current season.

"If the additional exports are not allowed, we may be left with a huge carryover stock. Due to weak demand in the domestic market the carryover stock may stand at around 7 million bales, which is nearly double of the last year," informed Parag Patel, a ginner from Ahmedabad.

The international cotton prices are believed to be in the range of 165-170 cents per pound, while domestic prices are hovering in the range of Rs 39,000 per candy (a candy = 356 kg) of shankar - 6 variety.

The meeting was attended by about 120 delegates from cotton ginning industry. Of the ten cotton growing states, representatives from seven states were present at the meeting.