During a joint meeting held by the South India Cotton Association (Sica) and Southern India Mills' Association (Sima) with a three-member delegation from LCA Ltd here on Monday, spinners and traders importing cotton complained of LCA rules and arbitration proceedings being heavily loaded in favour of sellers.

``We are not heard properly in the case of delay in shipments at the sellers end. There are no specific covers for shade variations, stickiness etc. Standardisation of certain quality parameters is a must,'' members of Sica and Sima told the delegation.

LCA is an arbitration centre for cotton traders world over. It is estimated that around 60 per cent of the global cotton trade of around 25 million bales was covered under the LCA arbitration and contract rules during 1999. LCA has around 350 firms in 60 countries as it's members and majority are based outside the UK. The association came under flak from some of the Asian cotton user industries for not being Asia-freindly even after contraction of the British textile industry.

The delegation's visit to Mumbai and Coimbatore assumed significance since Sica, upon requests made by the cotton importers (mainly major spinners), has already prepared a blueprint for rules and regulations for future cotton imports by the Indian user industry. These rules, though almost on the lines of LCA rules, deals with certain specific issues to provide adequate protection to the user industry.

Moreover, India is fast catching up as a major destination for cotton exports from CIS, Australia, South Africa, US etc. Cotton imports, which was around five lakh bales two years back, is likely to cross 15 lakh bales during the current year, according to industry estimates.

``Yes, we are aware of the concern of cotton importers here. It is not true that we are biased. The specific areas would be addressed after we hold discussions with our members. There is more of a communication problem,'' LCA president Paul Kinney told newspersons. He cited the increasing incidence of contracts in China being routed through the association as testimony to the Association's popularity and credibility.

However, LCA has rejected any proposal to include some of the specific issues spelt out in the Sica-prepared blueprint for cotton contracts. The LCA officials agreed to hold an interface with the cotton trade and industry in India at a later stage. On Sica's request for becoming arbitrators, he said ``any member of LCA can become an arbitrator.''

The cotton importers here, in a rare gesture of unity, promised to give shape to a rating list and put pressure for amendments to protect themselves from late shipments. During the session, Sica president C Soundara Raj requested LCA officials to recognise the legitimate needs of the textile industry and arrive at a consensus for improved trading relationship.

``The LCA rules have to be changed taking into consideration the latest technology available for cotton testing. The rules have to be oriented towards the respective regional requirements,'' he added.

The Liverpool Cotton Association (LCA) Ltd, rating list can be prepared by to protect from delayed shipments.