The Industry fears this may create artificial scarcity
While objecting to government’s decision to lift ban on cotton exports, The Southern India Mills Association (SIMA) and the Tirupur Exporters Association (TEA) have appealed to the centre to allow cotton export only with effect from January 2012 to avoid artificial scarcity during the beginning of the season (October-September).
They said the decision to lift restrictions on cotton exports for the current season and allowing shipments under open general licences (OGL) would affect the domestic industry. Furthermore, hoarding and speculation may result in steep increase in prices of cotton and cotton yarn, Southern India Mills Association (SIMA)Chairman J Thulasidharan said in a release in Coimbatore.
He expressed fears that the cotton export under OGL would also encourage the few man-made fibre manufacturers to jack up the prices, thereby making even 100 per cent polyester and polyester cotton textile products costly for the people below poverty line, who were the ultimate consumers, he said.
TEA President A Shaktivel added that the decision on permitting exports under OGL will create speculation in the market and good quality cotton will be exported to competing countries leaving the countrymen in the lurch. So, he suggested that only export surplus should be allowed to move out of country after meeting the demands of local natives.