Indian cotton exports will lead to the closure of domestic small businesses

The Indian textile industry believes that the government announced that it is immature to liberalize cotton exports. They express their concern about this and believe that when the textile industry has just begun to pick up, the decision made by the government will allow the domestic cotton textile industry to survive.

A.Sakthivel, president of the Tilap Exporters Association (TEA) in India, said at a press conference that India will release cotton exports from October 1. This will bring disaster to the entire textile industry, especially Tiru. Knitwear export companies will suffer heavy losses. Last year (2009-10), cotton exports were not restricted, and cotton yarn prices rose, hitting heavily the Tirupur knitted export enterprises.

Sakthivel said that he has sent representatives to meet with Minister of Industry and Commerce Anand Sharma to ask him to review the situation and not to approve the free export of cotton on October 1. In addition, cotton exports must be released after January 15th. .

At the same time, the South Indian Textile Mill Association (SIMA) has expressed concern that the association said that more than 500 small textile mills and corresponding capacity in the value chain will be forced to close because of the lack of quality cotton. Association President J.Thulasidharan said that they had to wait for the listing of new cotton.

Industry sources said that the government has approved exporting 8.5 million bales of cotton in 2009-10, but the Cotton Advisory Committee’s initial export estimate is 5.5 million bales. This has led to a serious shortage of high quality cotton at the end of the year.