CHENNAI: Cotton imports by a few spinning mills in Tamil Nadu are likely to result in trade disputes with the buyers yet to get delivery of consignments over the past few months.

Some of the mills which had to receive these imported cargoes in March and April have not got any response from the sellers over the delay, according to the Tamil Nadu Spinning Mills Association (TASMA). “Some of our members had signed contracts with suppliers and shippers for delivery of cotton in March and April this year and they have reported that the deals have not been honoured. Though four months have lapsed in some cases, suppliers and shippers are not providing any satisfactory reply,” said 

K Venkatachalam, Chief Advisor, TASMA.

Cargoes due to be delivered during May-June have also missed the deadline, he told. In view of the suppliers’ and shippers’ silence, TASMA has taken up the issue with the International Cotton Association (ICA).

Spinning mills in Tamil Nadu have entered into deals worth a total of 

Rs. 400 crore. “Our members have paid Rs. 60 crore as a 15 per cent advance has to be paid out of the total contract cost,” he said.

ICA was yet to respond to a mail seeking clarification on the issue 

when this report was published. 

“The consignments have not reached the buyers due to congestion at ports. There is also container shortage as cotton is shipped in containers,” said a trade source, not wishing to identify.