Textiles mills in the country would be forced to curtail their production for want of raw cotton from July onwards with production slipping and consumption rising, according to Southern India Mills Association (SIMA). The Cotton Advisory Board (CAB) at its January 6 meeting had overestimated production and under-estimated consumption, SIMA chairman, J Thulasidharan said in a statement.
According to the board, cotton production for 2010-11 has been estimated at 329 lakh bale and consumption about 275 lakh bale. Based on the latest information from South India Cotton Association and SIMA members, estimated cotton production would be around 309 lakh bale, he claimed.
On consumption, Thulasidharan said the Textile Commissioner’s office has already estimated it at 275 lakh bale. However, non-submission of data by some mills and also capacity being added in the spinning sector, the requirements, including non-mill consumption, would exceed 285 lakh bale. ?Any further export would seriously affect the entire textile value chain?, he said.
As per CAB estimates, Northern region (Punjab, Haryana and Rajasthan) crop would be less than 40 lakh bale, which has been endorsed by the ginning and trading community. During the past several years, Maharashra farmers have been selling sizable kapas to Gujarat of fetch higher income whereas in the current season, since the farmers are realising good prices in Maharashtra itself, trading of kapas to Gujarat has come down drastically. This will result in Gujarat’s crop to less than 100 lakh, he said.
SIMA chairman said that in Maharashtra both production and quality have been impacted considerably, which was evident from the fact that large scale arrivals of low micronnaire cotton have been reported. ?This in turn is an indication of severe crop damage in Maharashtra and its crop production would be only around 80 lakh bale as against CAB estimates of 92 lakh bale?, he said.
Thulasidharan urged the textile ministry to take up the matter with commerce and Agriculture ministries and restrict the cotton export at 55 lakh bale. The permitted quantity of cotton export has already exceeded the quantity decided by the group of ministers, by two lakh bales, he added.