Southern India Mill Association has appealed to the Centre to immediately ban cotton export and stop registering any cotton for export considering the ''grave'' situation being faced by the textile industry.
In a statement, SIMA Chairman J Thulasidara said the monsoon failure and floods in a few cotton growing states have considerably affected cotton production and actual production might be only around 260 lakh bales against 290 lakh produced during the last year.
Only around 150 to 160 lakh bales would be good and above average quality cotton, he said and cautioned that if quality cotton were allowed for export, the domestic industry, which needed around 240 lakh bales, would end up with all sub-standard and inferior quality cotton. It would be compelled to pay the price of good quality cotton and also depend on imported cotton to meet customer needs, he said.
Stating that the cotton prices would come down by at least Rs 1,000 to Rs 1,500 per candy during Oct-November, when compared to September, Thulasidaran said during the current season, the prices have already gone up by almost rs.2,000 per candy when compared to September prices.
The prices of standard varieties like Shankar-6 have already exceeded Rs 2,5000 per candy as against Rs 22,600 prevailing in September, he said.