The nationwide indefinite strike by transporters has virtually halted cotton trade across the country.
Atul C Ganatra, the president of the Cotton Association of India (CAI) said: "The strike has affected adversely the arrival of cotton. Ginning factories are on the verge of closing down because of the lack of raw material. The traders are not able to move cotton sold and in turn, all payments are stuck up due to non-movement of yarn."
The shipment of cotton has stopped leading to non-fulfilment of obligations by the exporters resulting in the problems of cancellation/invoice back/delayed shipment with penalty etc., entailing huge losses. The textile industry is also not getting the required raw material as the supply has been impacted adversely. The entire cotton trade is reeling and all stakeholders are suffering badly.
The CAI has urged the government to find an amicable solution to this problem, which, if not resolved immediately, will compound the adversity and the loss to the entire sector.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks