India : The export of 5.5 million bales of cotton from India during the early part of this cotton year has created an artificial cotton shortage in India, said Mr. Shishir Jaipuria, Chairman of the Confederation of Indian Textile Industry (CITI).
In the statement released by CITI on May 31st, it has been reported that cotton textile spinning mills have decided to continue with the voluntarily production slash of 33-40% from tomorrow (1st June, 2011) until the stock situation improves.
The recent one day strike by Indian spinning mills on Monday, 23rd May and the subsequent production reduction has resulted in a loss of Rs. 600 crore.
Mr. Jaipuria stated, the CITI has requested no further export of cotton until the arrival of next year’s crop.
CITI has demanded urgent steps from the Government of India to address the crisis situation facing the spinning mills and the entire textile value-chain.
However, the fate the cotton exports is likely to be decided on June 2nd , when the Group of Ministers from the Ministries of Finance, Agriculture, Textiles and Commerce are expected to convene, according to a recent report in The Hindu.