relaxation would prove a boon to the textile industry as it would help move
cotton fast and cost effectively too.
industry has hailed the latest round of cabotage relaxation as it would help in
faster transportation of cotton.
India Mills’ Association Chairman P Nataraj said it would benefit cotton
farmers in Gujarat and spinning mills in Tamil Nadu.
“The mills in the State consume around 50 lakh
bales of cotton grown in Gujarat every year as its fibre quality parameters are
preferred by the knitted garment makers in Tirupur. But we were losing heavily
on transporting the cotton,” he said.
peak cotton season, the lorry freight per bale between the ginning factories in
Gujarat and spinning mills in Tamil Nadu can touch a high of Rs. 1,000, while
the transportation cost for importing the fibre from West Africa worked out to
just Rs. 400/bale.
the industry to transport the fibre by rail and ship. But the price difference
between lorry and these modes of transport was less than 10 per cent. The
industry sought relaxation of the cabotage rule for transporting cotton from
Gujarat to Tamil Nadu and use of foreign-flagged vessels to carry cotton.
Shipping Nitin Gadkari has always been repeating that the transport by the
coastal shipping is less expensive compared with the cost incurred due to road
transport. Besides, sea-transport, apart from decongesting the road, cuts
carbon footprint, a long-term advantage that helps the transport in its efforts
to go green.
Chairman perceives that the foreign-flagged vessels might be in a position to
offer a competitive rate as a large number of empty foreign containers are
transported between the Gujarat and Tamil Nadu Ports.