[ad_1]
Tamil Nadu Spinning Mills Association (TASMA) has said that its members are not bound to bylaws of International Cotton Association (ICA) if they buy cotton from suppliers/shippers who are members of ICA. TASMA has decided to defer its decision for a week on blacklisting suppliers on the issue of continuous delays in delivery of cotton imports.
“Our members and other Indian importers are badly effected due to delay in delivery of imported cotton. A meeting was held last week to take a decision after complaints of non-cooperation by the suppliers and one-sided stand of ICA. Members of the association said that they are facing delays in receiving of cotton, as contracted with their suppliers/shippers. They expressed the difficulties experienced by them. They informed that all matters are still pending without finding out a solution,” TASMA said in a statement.
Tamil Nadu Spinning Mills Association (TASMA) has said that its members are not bound to bylaws of International Cotton Association (ICA) if they buy cotton from suppliers/shippers who are members of ICA. TASMA has decided to defer its decision for a week on blacklisting suppliers on the issue of continuous delays in delivery of cotton imports.
According to TASMA, the ICA admitted that the delay in supply would constitute a breach in the contract, but settlement for the breach is the area where the matter could not be concluded amicably among the parties. Cotton buyers are insisting to cancel the contract and pay back the advance amount paid to their suppliers. But the suppliers are not accepting the demand as the model text of contract never go with the matter of cancellation of contracts on such defaults.
The members involved in the dispute have requested TASMA to grant a time of one more week for continuing negotiations to settle the matter amicably with their suppliers/shippers. After detailed discussion in the meeting, TASMA has deferred the decision on blacklisting such suppliers/shippers for another one week.
In case, if any settlement is not reported to TASMA, considering the future of the TASMA members, TASMA would blacklist such suppliers so they would not be able to further deal in supplying cotton to members of TASMA, the textile body said.
TASMA has advised its members to not to go with the existing text of contract, which is completely one-sided, unless ICA comes forward for changing the model draft, by providing suitable provisions balancing the interest of both the parties.
Fibre2Fashion News Desk (KUL)
[ad_2]
Source link
