Textile industry seeks mandatory declaration of cotton stocks

There is no reliable data available regarding the stock with the kapas traders, ginners or cotton traders

The textile industry has appealed to the Union government to make cotton stock declaration mandatory for all stakeholders.

T. Rajkumar, chairman of Confederation of Indian Textile Industry, Ravi Sam, chairman of the Southern India Mills’ Association, and Raja M Shanmugam, president of Tirupur Exporters’ Association said in a press release that only about 240 lakh bales of cotton are said to have arrived in the market as against 320 lakh bales that should have arrived by this time of the season. There is no reliable data available regarding the stock with the kapas traders, ginners or cotton traders. In the case of spinning mills, only about 40% provide data to the office of the Textile Commissioner.

Cotton prices have shot up from ₹44,500 a candy in February last year to ₹90,000 a candy now. “It is feared that the industry may face cotton shortage during August to October,” according to the release. Unless the global competitiveness of the domestic industry is enhanced by removing 11% import duty on cotton, the highly labour-intensive, ready-made garment cluster will face severe crisis.

The government should immediately announce duty-free import of 40 lakh bales of cotton and take steps to curb hoarding of cotton, according to the release.