With cotton prices now down to Rs 62,000 per candy, exports are likely to pick up and there is a possibility of shortages locally. Consequently, the textile industry has been demanding that the 11percent import duty be done away with.
Coimbatore: The Indian textile industry has been hit hard by the volatility in cotton prices in recent times.
In May last year, the price of a candy (356 kg) of cotton crossed Rs 1 lakh and it created lot of stress in the industry.
Due to the efforts of the central government, the prices started coming down of late.
Tulsidharan, President of the Indian Cotton Federation (ICF), said, "The price of cotton is currently Rs 62,000 per candy. After two weeks, the arrival of cotton in the market will increase significantly. This is likely to bring down the price considerablyâ€.
“Cotton will be exported more from India if the prices come down. Due to this, there will be shortage of cotton for domestic purpose in April and May," he said.
Rajkumar, President of the Confederation of Indian Textile Industries (CITI), said:
“Last year, cotton farmers got a price of over Rs 12,500 per quintal. Most of the farmers and cotton traders brought less than 60 per cent to the marketâ€.
“India's textile exports declined by 28 per cent compared to the April-December period last year. For the last 10 months, we have had to stop production by 30-60 per cent to avoid losses†Rajkumar said.
“The government should remove the 11 per cent import duty levied on cotton to avoid an increase in cotton exports and a shortage experienced at home. Cotton farmers will not incur any losses as there is minimum support price for the produceâ€.
“International cotton traders are highly likely to once again disrupt the Indian cotton market and impact the Indian textile industryâ€. He said
“Therefore, the central government's removal of import duty on cotton will be the only relief for the textile industry, which has been on the decline for 10 months†Rajkumar said.
In May last year, the price of a candy (356 kg) of cotton crossed Rs 1 lakh and it created lot of stress in the industry.
Due to the efforts of the central government, the prices started coming down of late.
Tulsidharan, President of the Indian Cotton Federation (ICF), said, "The price of cotton is currently Rs 62,000 per candy. After two weeks, the arrival of cotton in the market will increase significantly. This is likely to bring down the price considerablyâ€.
“Cotton will be exported more from India if the prices come down. Due to this, there will be shortage of cotton for domestic purpose in April and May," he said.
Rajkumar, President of the Confederation of Indian Textile Industries (CITI), said:
“Last year, cotton farmers got a price of over Rs 12,500 per quintal. Most of the farmers and cotton traders brought less than 60 per cent to the marketâ€.
“India's textile exports declined by 28 per cent compared to the April-December period last year. For the last 10 months, we have had to stop production by 30-60 per cent to avoid losses†Rajkumar said.
“The government should remove the 11 per cent import duty levied on cotton to avoid an increase in cotton exports and a shortage experienced at home. Cotton farmers will not incur any losses as there is minimum support price for the produceâ€.
“International cotton traders are highly likely to once again disrupt the Indian cotton market and impact the Indian textile industryâ€. He said
“Therefore, the central government's removal of import duty on cotton will be the only relief for the textile industry, which has been on the decline for 10 months†Rajkumar said.