India’s first special storage facility for handling raw cotton has opened at Thoothukudi port, Tamil Nadu.
The facility set up by the port estate can house around 500 Twenty-foot Equivalent Units of 40 feet containers. International traders can stock raw cotton at the facility for a period of 30 days free of cost.
There will be a world-class infrastructure for warehousing of raw cotton, state-of-the-art equipment, transportation and handling facilities, commercial office space, water, power, communications and connectivity, and one-stop clearance of import and export formalities.
The facility would help textile mills get cotton at international prices within a week, thereby increasing yarn production in Tamil Nadu. The facility would have a ripple effect by strengthening the textile value chain particularly knitting, weaving, garment, textile processing, apparel sector etc. The initiative will also help spinning mill owners buy cotton at competitive prices in the Indian market.
It is expected the warehouse will attract global raw cotton traders to Thoothukudi and boost the textile business in the southern peninsula as international cotton traders from Africa, Pakistan and other countries have been sending raw cotton to ports in Malaysia.
The aim is to have a free trade warehousing zone at Thoothukudi port.