New Delhi, May 4: At least six lakh bales (170 kg) of cotton has been contracted for imports this season (October 1997-September 1998) to overcome the shortage in India's domestic production, an apex textile mills body has said."We are not sure how much cotton has been imported exactly. But nearly six lakh bales have been contracted for imports," Indian Cotton Mills Federation secretary general MP Gajaria said.
Cotton imports have increased manifold this season on a fall of nearly 28 lakh bales in production and poor quality.
This season India's cotton production has been estimated to be 148 lakh bales against a record 176 lakh bales last season.
In view of the production shortfall, imports are expected to be 6-6.5 lakh bales against a meagre 50,000 bales import last year.
"Leave alone the question of availability. Where is quality cotton available in the country?" Gajaria asked.
Cotton production has been hit mainly due unseasonal rain and pest attacks in northern region, comprising Punjab,Rajasthan and Haryana, Vidharbha region in Maharashtra and Karnataka.
Gajaria said cotton had been contracted mainly from Australia, Egypt and West Africa.
"Small quantities have been contracted from Sudan and the United States also," he said.
Cotton imports have been made feasible in view of lower global prices for cotton, ruling at a four-year low this season.
Cotton imports are allowed duty free and under open general licence in India. Meanwhile, cotton prices in the country continue to be soft on weak demand. Demand from the mills was lacking as the industry was still facing demand recession and yarn stocks were penting.
Movement of yarn both on the exports front and in the domestic market were minimum, industry sources said. Yarn exports have slid by over 20 per cent since January this year mainly due to the south east Asian financial crises. Mills were also not keen on picking up low quality cotton from the markets.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.