CAI seeks govt help to overcome crisis

Mumbai, Nov 26 (UNI) The Cotton Association of India (CAI) has approached the Union Commerce Minister Kamal Nath and Textile minister Shankarsinh Vaghela to help the industry emerge out of the economic crisis, following the global meltdown.

The CAI, in a release here, today said due to significant fall in the international prices and Minimum Support Price (MSP), a precarious and unprecedented situation has arisen in the cotton market with all segments of the cotton economy, including ginners, traders, exporters and textile mills, facing severe problems.

In its representations to the ministers, the CAI has asked them to look into the matter and arrive at some solution to end the prevailing stalemate in the cotton and textile section.

They have requested the Government to take immediate measures, asking them to reintroduce and increase export incentive to two per cent, allowing interest on export similar to the priority sector funding, to include raw cotton exports in Krishi Upaj Yojna with effect from April one, 08 and to finalise the fixation of standard Input Output norms.

CAI has also suggested to the Government to facilitate supply of cotton through Cotton Corporation of India (CCI) to the textile mills and Indian exporters at market relevant prices and also involve trading and broking community through suitable means to ensure uninterrupted supply and movement of goods in the market.

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