Delegates taking part in East India Cotton Association (EICA) conference asked for granting higher subsidy on cotton in order to be able to compete effectively in global market.
The delegates voiced their concern as pressure on prices would be created due to a record 24 million bales of cotton produced this season.
Demand for cotton has increased because cotton growers are getting good prices even though bumper crop has been reported, observed EICA Chief, KF Zunzunwala.
He said there are favorable inquiries from market for Indian Bt, Shankar-4 and COT cotton varieties abroad this year. Improvement in the quality of cotton has generated a good demand.
Cotton export of around 2.5 million bales is expected this year compared to 1.0 million tonnes last year.
Mr Zunzunwala said India's performance in global market would have been competitive if support in form of subsidy had been provided by Government.
Mohit D Shah of Gill & Co and Pankaj Kotak of Kotak Agencies, advised to enhance cotton yield, apply uniform standards, use mechanical testing, prefer futures trading, and promote famous Indian varieties.
Other suggestion offered were to honor contracts, avoid excess trading and delay in settlement, reduce contamination and moisture content in cotton and reduce handling or logistic costs to bring down overheads.
marketing@alchempro.com
