Tiruppur Garment Manufacturers Seek Govt Intervention On Cotton Pricing
Date
5/16/2024 2:16:20 PM
(MENAFN- KNN India) Coimbatore, May 16 (KNN) The South India Hosiery Manufacturers Association (SIHMA), representing domestic garment producers in the key textile hub of Tiruppur, has called upon the Ministry of Textiles to implement measures aimed at stabilising cotton prices.
In a press statement, SIHMA President A.C. Eswaran urged the Cotton Corporation of India (CCI), which is establishing distribution centers in Tamil Nadu for the sale of cotton, to maintain stable pricing and avoid fluctuations driven by global market trends.
Eswaran cited concerns over the potential adverse impacts of volatile cotton costs on downstream textile operations, including spinning and weaving facilities. He stressed that the garment manufacturing sector can only realise the benefits of competitive cotton pricing if the entire supply chain has access to cotton at low prices.
Additionally, Eswaran referenced the CCI's recent decision to sell cotton directly to end-users, bypassing traders. He advocated for government oversight of cotton purchases by traders from ginners, suggesting that trader-held stocks should be permitted for export only after meeting domestic demand.
The appeal from the influential industry group underscores the apprehensions within the textile sector regarding cotton pricing and its potential ramifications across the value chain. Stakeholders await the government's response to address these concerns.
(KNN Bureau)
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