Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), says,the skyrocketing of cotton prices have created a panic situation in the country. The continuous increase in the cotton prices and consequently the yarn prices is causing havoc for the exporters to meet their long term commitments. With continuing uncertainties, exporters are finding it difficult to confirm long term orders.

Various policy initiatives taken by Government of India especially the extension of RoSCTL benefit for the garments and made-ups till March 2024 and inclusion of yarns, fabrics and other products under RoDTEP have enabled the industry to improve their global competitiveness and marching towards achieving the vision set by the Government to reach $44 billion textiles & clothing exports by March 2022, Ram adds He urged the Government to create a level playing field by removing the import duty on cotton. This would change the cotton market sentiment to a certain extent, he adds.

The anticipated bulk arrival of cotton in the post Diwali would force the market to reduce the cotton price, impacting yarn prices, Ram adds. He advised the spinning mills to be very cautious and extend full cooperation to the downstream sectors so that the country could continue to get the increased demand opportunities thrown by both domestic and international markets.