If reports are to go by then Sri Lanka is expected to facilitate stocking of large quantity of cotton from international sellers from this month onwards, and supply it to various markets, thus projecting Colombo as a cotton hub. This will also enable mill owners in India and other south Asian countries to procure cotton at a much cheaper rate. Recently a seven-member delegation from Southern India Mills’ Association visited Sri Lanka and had discussions with Sri Lanka Ports Authority officials in this regard.
The delegation told a news daily that they saw the facilities at Colombo Port, the Free Trade Zone warehouse and logistics services, and have also sought for 30 days storage of containers with free demurrage. It has been informed that cotton not only from Africa but from other countries can be stored at the Colombo Port which is then to be shipped to textile mills in India (mainly in southern part) and other south Asian countries.
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About 50 per cent of India spinning capacity is in south and shippers bring in cotton to Malaysia and supply to the buyers in south Asian countries. The transit time is three to four months. This transit time will be decreased if cotton is stocked in Colombo.
Traders also pointed out that cotton merchants need the flexibility of selling to Indian and other markets throughout the year. Countries such as Bangladesh and Vietnam buy imported cotton throughout the year. The advantage Sri Lanka will have in this regard is its better connectivity to Karachi, Chittagong, Singapore and Vietnam.
