India: ginners demand more cotton export
Representatives of cotton ginners from seven of the cotton growing states in India are to submit a memorandum to the central government for their demand to allow additional cotton exports in the current season. They will also request that cotton exports are included under the open general licensing (OGL).
The All India Cotton Ginner’s Association (AICGA) had organised a meeting of its core committee in Ahmedabad on 29 June 2011. At the meeting, the ginners decided to file a memorandum to the prime minister and agriculture minister demanding additional cotton exports of 2 million bales, (340,000 tonnes).
“We have decided to demand 2 million bales of cotton export permit exclusively for cotton ginners. Also, we will make a representation to the prime minister’s office to prepare a long-term export policy for cotton exports,” said a committee member who attended the meeting. The memorandum will be submitted to the PM in a week’s time.
The industry is concerned about the possibility of large volumes of carryover stocks in the current season. “If the additional exports are not allowed, we may be left with a huge carryover stock. Due to weak demand in the domestic market the carryover stock may stand at around 7 million bales, which is nearly double of the last year,” said Parag Patel, a ginner from Ahmedabad.
The meeting was attended by about 120 delegates from the cotton ginning industry. Of the ten cotton growing states, representatives from seven states were present.
