I may draw your attention towards the supply – demand position of cotton in India for the year 2009/10 (In Million Bales)
|
| Opening Stock |
07.15 |
| Production |
31.50 |
| Import |
00.60 |
| Total Supply |
39.25 |
|
| Consumption |
24.00 |
| Export |
07.00 |
| Total Demand |
31.00 |
| |
|
|
Closing Stock 8.25
(as on 30.09.2010) (Source: Cotton Advisory Board, GOI) |
The cotton situation in India is more than comfortable. Normally, the mills keep 2 to 2.5 months requirement at the end of season. However, we will have equivalent of 4 months consumption at the end of the season. |
The Indian cotton farmers have changed the cotton scenario by increasing production – productivity and India became net exporter of cotton. The farmers are also economically benefited by both B.T. Cotton Technology and M.S.P. |
When the cotton situation is excellent, unexpectedly the Mills Associations are trying for and lobbying for a Ban on cotton export. They have already represented to the Minister for Textiles, Government of India with following misleading data: |
* That the total production will be declined to 26 million bales as against 29 million bales last year.
|
* Only around 16 million bales are expected to be above average quality and 10 million bales would be of inferior quality. |
* The domestic textile industry is spending more on transport cost than China and Pakistan spend on imported cotton. |
* The Indian textiles mills are paying 30 -40 % higher price for the Indian cotton. |
CIFA is unhappy for wrong presentation made by Mills Associations which are not only untrue but also misleading. I request the PM to check and verify the facts with Cotton Advisory Board of Ministry of Textiles. |
The correct picture of Cotton Sector is as under: |
| * In 2009/10, India has highest cotton sowing area. It will harvest over 30 million bales. |
* The Mills Association has stated that out of total production 10 million bales would be of inferior quality. This is absolutely false. On the contrary the B.T.Cotton area is increased and resulted in less pest attack and improved quality of Cotton. |
| * It is astonishing that import cost is less than domestic transport. The cotton importing countries are not only importing from India but also import from USA, Brazil, West Africa, etc. How can this be cheaper! |
| * In fact, Indian mills are getting their requirements at a cheaper rate than their counterparts and they are in a better position – level playing field not only now but for the many years as our requirements is domestically met. |
| As of 2009 India has became net exporter of cotton. We have created a BRAND NAME in international market. |
| We urge the Honorable Prime Minister Not to Ban Cotton Export and harm the interest of Cotton Farmers. |
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