ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Vanaspati- Opportunity Missed

significant increase in the production of long and extra-long staple varieties, which now constitute nearly thirty per cent of the total crop, has been achieved at the expense of other varieties resulting in serious unbalances and price distortions. The upgradation of the quality of cotton has much to commend itself. Finer yarn yields larg?r metreage per kilogram and consequently the cost of colours, chemicals, etc, gets spread over a larger metreage and is conducive to cost reduction. It is the government policy which is mainly to blame for the varietal imbalances and the consequent price distortions. The irrational structure of excise duties on yarn and fabrics has tended to inhibit the demand for long and extra- long .staple cotton. The governments belated decision (made known on June 6) to reduce the excise duty on cotton yarn of finer counts (by 19 paise a kg for 40s and by Rs 1.56 a kg for 60s and above) is welcome as it will have a salutary impact on the offtake of fine and superfine varieties of cotton. Apart from providing considerable relief to the farnners, it will help broaden the raw material base for the textile indus- try. Mills will be induced to make optimum use of finer cottons which in turn will ease the pressure of short und medium staple varieties. There is a sound case for encouraging the indusityro go finer. It is said that by enabling the industry to go finer by four counts from the present 31s count to 35s count, there could be a saving of as much as six lakh bales of cotton. There thus exists considerable scope for producing more yarn/cloth with 'he available supply of cotton and rectifying the varietal imbalance.

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