The burning issue of skyrocketing cotton and cotton yarn prices and representations pending for Government action is increasing worries of the apparel industry.
Consequently, the Tirupur apparel industry is going on strike on 17th and 18th January…
Industry veteran Dr. Rikhab C. Jain, Chairman, TT Limited, who is also associated with many industry bodies, has again raised the issue strongly and written a letter to all hosiery and garment associations, including AEPC.
“Despite representations to Prime Minister, Textile Minister and Textile Secretary and all relevant authorities, the problem of skyrocketing cotton and cotton yarn price remains unsolved. Even yesterday, Textile Ministry warned particular stakeholders of industry as well as speculators, but immediately after this warning, speculators became active and within a minute MCX shot up by 500 points plus. They have not taken warning in the right way, and speculators have assumed that Government action will not be significantly impacting them if any,” Dr. Rikhab said in a statement.
He said that there is no doubt that speculators, dealers, cotton traders have made mountain of money. MCX report is falsely mentioning that entire textile chain has benefited hugely during FY2020-21. This is a wrong statement. Yes, it is true that textile chain up to spinning segment has enjoyed super-super profit which they had never dreamt even in last 100 years.
From the above statement, it is clear that spinners, cotton traders, cotton ginning factories and perhaps farmers and speculators have minted money at the cost of fabric, powerloom, handloom, apparel and home textile segment.
They have taken the textile chain starting from fabric onwards to a bumpy ride, which needs to be curbed immediately. Speculators’ activities need to be curbed immediately by barring cotton trading access officially and unofficially in any form.
He insisted that it should be curbed immediately by barring commodity trading in MCX. Strict action must be taken against such offending speculators.
“I hope this would help to resolve the problem by strict Government prohibition of cotton trading on MCX and NCEX and action as early as possible,” he said.
It is worth noting that earlier other leading trade bodies like CITI, SIMA and TEA also raised their voice against cotton trading on MCX and NCEX.
