Periodic fluctuations in the prices of cotton have often been a problem for hosiery manufacturers. These fluctuations have upset the cost and profit margin calculations for various end products.

Hosiery manufacturers want cotton exports to be regulated so that domestic garment manufacturers get adequate stock. They suggest that exports of cotton should be allowed only at the rate of five lakh bales a month and exporters should be allowed to procure the prescribed quantity for exports only at designated months fixed in advance.

Manufacturers also want the union government to fix prices for various grades of cotton as soon as possible. South Indian hosiery manufacturers feel cotton produced should be ginned and sold directly by the Cotton Corporation of India at prices fixed by the government.

Hosiery makers feel restrictions on cotton exports would facilitate enhanced availability of cotton for domestic consumption and also help in checking yarn and cotton prices. Driven by depreciation in the value of the rupee against the dollar, there was a steep rise in cotton exports from the country, which led to a sharp rise in cotton prices in India’s domestic market.

The hosiery industry has been further burdened by the imposition of an anti-dumping duty on imports of polyester yarns from China or Thailand.