India, so far producing surplus cotton and exporting the same to different countries, is likely to face cotton shortage of 3 to 4 million bales during the current season. This is mainly owing to a substantial increase in demand and export of around 5 million bales.
Keeping this in mind, the textile industry has urged the Government to allow duty-free import of 4 million bales.
Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA), Coimbatore appealed to the Prime Minister for his immediate intervention on cotton policies and to take appropriate steps to avoid stoppage of production and job losses and enable the exporters to meet their export commitment during the off season.
He stated that owing to around 7.2 per cent reduction in cotton area and crop damage in certain cotton-growing States due to excessive rain, the cotton crop size for the cotton season 2021-22 would be less than 35 million bales as against the industries’ requirement of 36 million bales.
“The spinning sector that could not modernise over 35 per cent of the spinning capacity due to long-drawn recession during the last 15 years has now started making investments in modernisation, capacity expansion and greenfield projects. Around two lakh spindles capacity is being added every month in the country and this is likely to continue in the coming years if a conducive environment is created,” he said.
It is also pertinent to mention here that cotton yarn, fabrics and made-ups exports during the period April 2020 to January 2021 have increased from US $ 7,775 million to US $ 12,681 million,at an increase of 63 per cent.
Similarly, the apparel exports have increased from US $ 9,498 million to US $ 12,669 million during the same period, at an increase of 33 per cent.
The accelerated growth in the cotton textile industry has increased the cotton consumption by 10 per cent to 15 per cent during the current cotton season and the industry requirement is likely to reach 36 million bales surpassing the crop size for the first time in history and would make the country a cotton deficit one.
