High cotton prices hurt textile mills, garment units

COIMBATORE

With some textile mills increasing cotton yarn prices on Monday, garment manufacturers in Tiurppur have called for a ban on export of cotton and cotton yarn. Textile mills have, meanwhile, urged the Union government to come out with a system to collect accurate data on cotton production and consumption.

“There is no data on cotton production, consumption, stocks available with farmers and traders,” Ravi Sam, chairman of Southern India Mills’ Association (SIMA), said.

“Textile mills are adding spindles and cotton consumption is increasing. Only with proper data can the government take decisions that will help the industry,”

It is estimated that at least two lakh spindles are added every month leading to higher demand for cotton. Textile mills have started contracting cotton from overseas suppliers though international prices are at present slightly higher than domestic prices. If cotton and yarn exports are banned, prices will crash and the mills will incur losses, he said. Cotton prices reduced slightly when the government removed the import duty. However, the prices started shooting up after that.

The government should announce a technology mission on cotton to increase productivity and introduce a system to collect proper data on cotton, he said.