NTMA calls for establishment of cotton board

The Nigerian Textile Manufacturers Association (NTMA), has called on the Federal Government for establishment of a cotton corporation in the country in order to boost production of the commodity and revitalize the textile industry.

Mrs Grace Adereti, President of The Nigerian Textile Manufacturers Association (NTMA), who made this call while addressing newsmen in Lagos over the weekend, noted that the creation of the corporation would ease textile manufacturer’s access to raw materials for production.

She stated; “When we contacted the farmers, they said that they are not ready to supply to us at the price negotiated by the ginners. We discovered that the farmers base their price on what they will generate from exporting the cotton.

“If we accede to the price, our output will become uncompetitive considering the infrastructural deficit in the country, which affects the cost of production. We are in a fix. Some factories have suspended production because they do not have cotton for production.

“In the past, there was a market board and government had control over the price of cotton. We want the government to intervene in this matter and save manufacturers. We have the machinery and the workforce and we are ready to produce, but we are hindered by the present situation.”

Also speaking, Director-General of the association, Mr Hamma Kwajaffa, lamented that rivalry among government agencies contributed to the challenges hindering the growth of the textile industry.

He stated; “The former Minister of Agric initiated the creation of the cotton corporation, but he had a rivalry with the Minister of Trade that said establishing the corporation falls within his domain.

“That was how the whole matter was stalled at the Federal Executive Council. The absence of regulation makes everyone to fix prices that they want across the value chain. If you go to Chad, you cannot just buy cotton. It is regulated by their government. We will prefer that local usage of cotton is given preference before export.”

Kwajaffa said the corporation would create shared prosperity while stimulating the growth of the agricultural and industrial sectors of the economy.

Daily Times recalls that Kwajaffa had earlier warned that the industry would face extinction unless the Central Bank of Nigeria (CBN) would allow manufacturers access to foreign exchange.

He noted that the industry is on the brink of crisis as the few existing textile manufacturers are set to suspend production due to non-availability of forex for procurement of raw materials.

He stressed; “The situation has impeded our production activity because most of our production components cannot be sourced locally. By now, many companies ought to have fabrics in the market against Christmas season but they cannot do that.”

Sen. Walid Jibrin, a former President of the association, said the non-regulation of pricing and grading of cotton as was obtainable in the past had created quality and scarcity challenges in the textile sector.

He pointed out that creating a cotton corporation will improve the quality, quantity, marketing and competitiveness of players across the entire value chain, urged the government to make pragmatic policies that would reinstate the industry’s status as the largest creator of jobs.