SIMA hails intervention of Union Textile Minister

Ravi Sam, Chairman, Southern India Mills’ Association (SIMA) appreciated the proactive and bold steps taken by the Union Minister of Textiles to control the speculation in cotton trading by directing SEBI and MCX to bring necessary changes so as to enable the cotton futures trading to benefit all the stakeholders in the cotton textile value chain and protect the jobs of 35 million people directly employed in the cotton textile value chain and also around 6.5 million cotton farmers.

He added that the Indian cotton prices are still higher by 15% to 20% when compared to the international cotton prices especially the countries like Pakistan and China. The domestic price must match with the competing countries and the international cotton prices to have a level playing field and enable the Indian cotton textile industry to revive from the unforeseen crisis.

SIMA Chief has stated that the cotton requirement by the industry would surpass the production and the duty-free export of cotton might encourage 12% to 15% of good quality raw cotton export from the country during the season resulting in cotton shortage during the off-season. He has appealed to the Government to remove the 11% import duty to enable the industry to achieve its potential growth rate and sustain its financial viability apart from protecting the jobs of over 35 million people employed in the cotton textile value chain.

The MCX cotton price has been costlier by 40% to 60% by 31st August 2022 when compared to the New York futures.