High cotton prices hurt textile factories and garment units

As some textile factories hiked cotton yarn prices on Monday, garment makers in Tiurppur called for an export ban on cotton and cotton yarn. Meanwhile, textile mills have urged the Union government to come up with a system to collect accurate data on cotton production and consumption.

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

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

It is estimated that at least two lakh spits are added every month, resulting in increased demand for cotton. Textile mills have started subcontracting cotton to foreign suppliers, although international prices are currently slightly higher than domestic prices. If cotton and yarn exports are banned, prices will crash and factories will suffer losses, he said. Cotton prices fell slightly when the government removed import duties. However, prices started to climb after that.

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

Michael O. Stutler