Congestion in ports has pushed the Southern India Mills' Association (SIMA) to weigh the possibility of tapping the New Mangalore Port (NPT) in Karnataka for cotton imports. Members of SIMA, along with those from the South India Spinners Association (SISPA), traders and liners, held talks in this regard with chairman of New Mangalore Port Trust P C Parida and other officials earlier this week.

The predominantly cotton-based textile industry in the south, particularly mills in Tamil Nadu, imports significant volumes of West African cotton to manufacture knitted garments. According to SIMA, NPT offers excellent warehousing facilities, specially for the benefit of small and medium scale spinning mills.

SIMA has sought extension of customs-free bonded warehouse for cotton -- as in Malaysian ports -- so that traders could store the imported cotton and supply to small and medium spinning mills all over southern states. Such a facility would also enable the traders to return the unsold cotton to the original destination without any additional cost. Moreover, port handling charges, wharfage and demurrages are much lower in the case of NPT and authorities have invited them to visit the port.