Cotton Exports Sought

M Appuswamy, president of the Tamil Nadu Cotton Ginning, Pressing, Traders and Growers Federation, said India is likely to import two lakh bales of extra long staple (ELS) cotton and this will push down prices of Indian varieties such as DCH-32, MCU-5 and Suvin as mills will get the imports cheaper under open general licence.

In a letter to Union textiles minister R L Jalappa, Appuswamy has pointed out that American PIMA is now quoted at around US cents 115 per lb, which comes to about Rs 32,232 per 355.56kg candy, c.i.f. Bombay and the payment is by L/C at site. For deferred payment, 10 per cent interest per annum is payable up to 180 days.

 

Egypt is also offering its GIZA long to extra long staple varieties at US cents 103 to 200 per lb, f.o.b. Egypt. Although the higher end is costlier than the Indian variety, Egypt has four lakh bales of surplus stock to it may cut export prices. The CIS is quoting 126 cents to 137 cents per lb c.i.f. Mumbai/ Chennai/ Tuticorin for its 35mm staple cotton.

Meanwhile, India's DCH-32 is going at around Rs 28,000 a candy spot, plus four per cent central sales tax, interest at 18 to 20 per cent per annum and the payment within 15 to 30 days, which makes it less attractive for mills than the imports.