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Demanding relaxation of cabotage rule for movement of cotton

New Delhi: The Government of India has relaxed Cabotage rule for movement of cotton from Gujarat to Tamil Nadu. The Ministry of Textiles took up the matter and facilitated interaction between the textile industry and the shipping industry for ensuring hassle-free movement of cotton bales at competitive prices.

It also organised discussions between the textile industry and the shipping industry on the availability of ships and containers for cotton transportation at competitive rates.

Ministry of Shipping granted relaxation in May 2018, under the Merchant Shipping Act to permit the coastal movement of cotton on foreign flag vessels chartered by Indian individuals or the companies carrying EXIM containers and empty containers.

The textile industry through South India Mills Association (SIMA), Coimbatore, had represented for the relaxation of Cabotage rules for movement of cotton from Gujarat to Tamil Nadu.

Cotton Production and Exports

The Cotton Advisory Board (CAB) has estimated that during the current cotton season of October 2017 to September 2018, the export of cotton from India is likely to increase by 20% over last year and is expected to touch 70 lakh bales by September 2018. From October 2017 to April 2018, the total amount of cotton exported from India was 51.21 lakh bales. The CAB has estimated that the cotton production for the current cotton season will be 370 lakh bales.

 

Domestic prices of cotton are ruling below the International cotton prices. Details of domestic sale prices of the representative variety of S-6 cotton vis-à-vis International prices of its equivalent variety as follows:

 

Month

Domestic Prices (S-6 Variety) in Rs./ Candy

International Prices

(Cotlook A )

Variation between domestic and International prices

in USC/lb

Conv. in Rs/candy

October, 2017

38468

78.68

40126

-4.13%

November, 2017

37462

80.39

40921

-8.45%

December, 2017

39296

85.58

43113

-8.85%

January, 2018

41084

90.91

45350

-9.41%

February, 2018

40061

88.27

44568

-10.11%

March, 2018

40846

92.07

46947

-13.00%

April, 2018

41172

92.13

47414

-13.16%

May, 2018

42246

94.45

50009

-15.52%

June, 2018

46265

97.71

51943

-10.93%

July 2018

(Up to 14.07.2018)

47192

94.40

50845

-7.18%

Source: Domestic Prices: Cotton Association of India (CAI); International Prices: Cotlook

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