“As a consequence, a good number of mills in Tamil Nadu had to cut down on production capacity while leading garment producers like Arvind Mills Aarvee Denims have been under-utilizing their capacities for the last six months. Others like Ahmedabad based Gujarat Ambuja Exports Limited and Textiles and Industries Limited have reduced their working days to mitigate losses. .Southern India Mills Association, which also reduced its labor hour by 10 to 15 percent, shared similar opinion and reiterated, âWe have demanded from the Government immediate suspension of cotton exports till December 31 2008 and remove import duty of 10 percent and Special CVD of 4 percent on import of cotton with immediate effect. We also hope that the authorities would ensure at least 40 percent stock ratio for use and allow cotton export on a quarterly basis, channelizing the same through CCI. Banning of futures trading in cotton to avoid speculation and removal of 1 percent incentive offered for export of cotton are some other proposals we have put forward. If the Government fails to take these measures immediately, the situation will worsen and the entire textile industry would come to a grinding halt very soon.âAbhijit Gohil, President of Soma Textiles and Industries gave his view on the situation, stating, âWe run all the departments six days in a week and wherever possible, work is being realigned to make it more cost competitive since the pressure of increased prices of finished goods is way too much. From time to time, the industry has made several presentations to the Government including quantitative restrictions on cotton exports as well as duty free import of cotton but the final verdict is yet to be given.âSource: Fibre2fashion
Date:7/5/2008
Source: