In a bid to safeguard textile cotton spinning sector, Rikhab C. Jain Chairman, TT Limited, a vertically integrated concern and self-contained textile producer, garment manufacturer, has urged Narendra Modi, Prime Minister of India to stabilize cotton prices round the year. He suggested that Government agencies must purchase up to 80 lakh bales (ready, pressed bales) during the current crop year beginning January, 2017 onwards in order to stabilize cotton prices in the country.
It may be mentioned here that cotton spinning mills in India are continuously facing losses in the recent past as good quality fresh cotton is exported at the cheapest rate of 10 to 15 cents per pound below international prices. And at the end, India imports costly cotton at about 10 cents/pound above local prices just to keep the spinning industry running.
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Rikhab suggested, “Cotton exports should be discouraged from November this year till the end June next year. If there is a surplus stock of cotton crop for the remaining part of crop year, pre-determined quantity for cotton can be allowed to be exported from July 2017 onwards.” He also requested for the imposition of Rs. 2,000 per quintal export duty to equalize Indian cotton prices with the international prices.
