Home / Knowledge / News / Textiles / Flip-flop Indian cotton export policy annoys B'desh
Flip-flop Indian cotton export policy annoys B'desh
13
Mar '12
The recent sudden imposition of ban on cotton exports by India, and the subsequent partial rollback of the same a week later, will impact the production and export of Bangladesh's textile and readymade garment sectors.

India is the second-largest exporter of cotton in the world and Bangladesh meets nearly 45 percent of its cotton needs by importing Indian cotton.

As a result of ban on cotton exports imposed by the Indian Government, Bangladesh would need to source the 45 percent of its cotton requirement from other countries, which would result in an increase in prices of imported cotton, which would, in turn, affect the competitiveness of Bangladesh's yarn, fabric and readymade garment sectors.

Speaking to fibre2fashion, Mr. Showkat Aziz Russell, Vice President of Bangladesh Textile Mills Association (BTMA) said, “The ban imposed by India on cotton exports has created some panic among the spinning mill owners in Bangladesh.”

“The mill owners started procuring cotton from other countries when the ban was announced. They imported cotton from Australia, Uzbekistan and the US. Personally, I bought about 10,000 tons, out of which half could have been from India, but they lost this sale because of the ban. Simultaneously, Indian cotton lost the demand as mill owners are now buying cotton from other countries,” he adds.

Explaining the decline in demand for Indian cotton, he says, “Last year, we placed orders for cotton from India, which was not delivered, in spite of export being open. This forced us to buy from other countries. Previously, we were buying 100 percent of our cotton requirement from India, but now we buy only 30 to 60 percent from India as there is high volatility in cotton prices and there is frequent change in Government export policy. Last year, even those who had got Letter of Credit (L/C) were not allowed to import cotton from India.”

Mr. Russell lays emphasis on market dynamics. He says, “To resolve this issue we need to act according to market dynamics - if the demand is high the price goes up; if the demand is less the price is likely to go down. If we practice our business within the demand and supply norm then both the countries will benefit. Everything works based on the demand and supply basis.”

Concluding on an optimistic note, he says, “I believe, the Indian textile sector and the Bangladeshi textile sector need to form a strategy together. On behalf of Bangladesh, as Vice President of the BTMA, I would like to welcome the Indian side to formulate a strategy for a win-win situation.”

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search