Tamil Nadu Spinning Mills Association (TASMA) has decided to take stringent action after the International Cotton Association (ICA) and rejected its request for cancellation of contracts. As per A Venkatachalam, the association will soon blacklist suppliers that do not invoice back actual losses, refuse to cancel contracts and payback the advanced amount received by them.

Venkatachalam said the draft rules, which were framed under the bylaws of ICA, and the way the suppliers/shippers follow them, completely go against the concept of ‘Rules of Fair Practice’. TASMA believes, ICA did not respond its concerns raised in the letter. TASMA had said that there was no provision of compensation in the contract on account of inordinate delay. High volatility in cotton prices and exchange rates reversed market conditions because of inordinate delay on the part of suppliers. The importing mills could not consume cotton and supply yarn to their buyers as per plan because they did not get deliveries even after waiting for four months. TASMA has demanded modification of the draft rules of the contract to maintain a reasonable balance in the interest of buyers and sellers.