Textile mills in southern India are considering at promoting Colombo as a hub where international sellers and shippers can stock cotton and supply to the mills in south India and also to buyers in other Asian countries. Mills in southern states are expected to import more cotton this year, that is, October 2016 to September 2017.
According to industry sources, such a project is expected to cut the transport cost substantially for the mills in the South compared to the cost incurred currently for moving home-grown cotton from Gujarat or Maharashtra to south India. It will bring stability to cotton prices in India.
A seven-member delegation from Southern India Mills’ Association visited Sri Lanka recently and had discussions with Sri Lanka Ports Authority officials.
“We have sought 30 days storage of containers with free demurrage,†said Mr. P. Chinnasamy, a part of the delegation. “We have invited a delegation to visit Coimbatore to have a meeting with the textile mills and cotton traders and sellers. We hope the facility will be operational by December,†he said.
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