“Domestic firms are suffering due to high cotton prices. In particular spinning sector will be at the receiving end. If cotton rates do not cool off, it will definitely affect the profit margins by 5-10 per cent,” said P Nataraj, managing director of the Tiruppur-based KPR Mill. .The textiles industry, in its presentation to the government, has asked to put a curb on exports in order to keep a check on prices. .However, certain section of the industry said that it is not so that enough cotton is not available. “If the country has produced much more than consumption, there is no logic why it should not be exported. The over $45 billion textile industry already has had a tough time for over the last year due to steep rupee appreciation. In FY08, the industry could not meet its exports target of $ 25 billion, and ended up at $ 20.5 billion, down 18 per cent. .Source: Business Standard
Date:5/22/2008
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