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Apparel exporters urge government to reserve cotton for domestic firms Close.


Date: 24-02-2012
Subject: Apparel exporters urge government to reserve cotton for domestic firms Close
 NEW DELHI: Apparel exporters urged the government to formulate a policy for reserving 25 lakh bales of cotton each year for domestic firms, in the wake of rising exports to China.

"We propose to the government to come out with a clear cut policy of reserving 25 lakh bales of cotton per year for protecting the interest of domestic textiles industry," Apparel Export Promotion Council said in a statement.

The Cotton Corporation of India could reserve the natural fibre, it added.

Mainly on account of rising demand for the natural fibre from China, the Cotton Advisory Board had revised up exports estimate for this year to 84 lakh bales from 80 lakh bales earlier. Last year, India exported 68 lakh bales of cotton.

The council claimed of the country's total cotton exports this year, over 85 per cent has already been shipped to China.

China is importing huge quantity of cotton from India to increase its reserves to offset the price fluctuation in the future and to maintain a regular supply to the textile mills, AEPC said.

In January, the Cotton Advisory Board (CAB) lowered the cotton output estimate from 356 lakh bales to 345 lakh bales because of falling per-hectare yields, for the 2011-12 season.

Mill consumption estimate has been revised up to 216 lakh bales for the current season from 210 lakh bales.

Source : economictimes.indiatimes.com

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