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Sos to PM and union ministers to protect textile industry

Coimbatore, Aug 25 (PTI) Various associations of textile industry appealed to the Centre to bring in a raw material security system for the industry, including calibration of cotton export. The recent notification from Commerce Ministry permitting cotton exports on Open General Licence (OGL) with effect from October and removal of export duty had brought 14 associations together and present a joint representation to Prime Minister and union ministers for Finance, Commerce, Agriculture and Textile, industry sources said here. The second largest employment provider of the nation, next only to agriculture, was saddled with inadequate availability of quality cotton as government permitted export of almost 85 lakh bales as against the earmarked quantity of 55 lakh bales by Cotton Advisory Board at the beginnign of cotton season (Oct-Sept), J Thulsidharan, Chairman, Southern India Mills' Association (SIMA) on behalf of the associations, said. Export of 85 lakh bales of quality cotton would bring down the closing stock to around 38.5 lakh bales, making to stock to use ratio at 15 per cent as against the world average of 33 per cent. Major portion of the closing stock cotton was below average and poor quality, whenever the stock to use ratio was dipped below 20 per cent, the cotton prices have increased abnormally and it was very essential to maintain at least 25 per cent stock to use ratio to have stablility in raw material prices and sustain the competitiveness of the textile industry. The notification had resulted in jacking up the prices of cotton almost rs.4000 per candy of 355 kg within a month, he said. The entire textile industry would come to a grinding halt for want of raw material, throwing several millions out of job, if cotton export is permitted without restrictions, Thulsidharan said. SIMA, Confederation of Textile Industry in India, Tirupur Exporters' Association, Tamil Nadu Spinning Mills Association, South India Small Spinners Association, Handloom Exort Promotion Council, Madurai Spinning Association, South India Cotton Association and Federation of Indian Export Organisations, were among the association that would make representation.