India: SIMA appeals to government to ban cotton exports till 2012
Textiles group the Southern India Mills Association (SIMA), has appealed to the Indian Prime Minister, Manmohan Singh, not to allow further cotton exports until January 31, 2012.
In a memorandum submitted to the Prime Minister during his visit to Coimbatore recently, SIMA made the request, citing the move is necessary to buffer stock and overcome the raw material crisis.
It is necessary to wait so that a realistic assessment of the exportable surplus could be made on the basis of reliable data on cotton production and consumption, SIMA said.
A recent Crisil Research study suggested that India would see cotton procurement costs rising sharply.
An increase in global prices has spurred cotton prices in India to new peaks. But prices in India have not increased as sharply as global prices because the government capped cotton exports from India for 2010-11 at 935 million kg – about 17% of the projected output, to ensure cotton supply for domestic consumers.
