Home / Knowledge / News / Textiles / New cess may lead to dip in Indian cotton exports
New cess may lead to dip in Indian cotton exports
02
Jul '13
The proposal to impose new cess on cotton exporters by the Union Government to create fund for stabilizing the drastic price fluctuation of cotton in the country could lead to dip in exports.
 
According to the representatives of the cotton industry, imposing cess on exports could have a negative impact on Indian cotton industry since exports will become costlier.
 
In a conversation with fibre2fashion, president of North India Cotton Association, Mr. Rakesh Rathi said, “Imposing cess on exports of cotton will help local industry as export from India will become costlier. But it will depend upon magnitude of cess. Without studying operation system of fund it is difficult to quantify its role in growth.”
 
According to Mr. Paresh B Valia, managing director of Asha Cotton Industries, the price fluctuation of cotton mainly depends on consumption, production, demand and supply. “So I think the stabilization fund will not make any change in the fluctuation of Indian cotton price,” he adds.
 
“In fact, the proposed new fund scheme may have a negative impact on the country’s export market as the buyers are concerned about increase in cotton prices,” he says.
 
Last week, the Minster of Textiles K Sambasiva Rao said that Indian Government is planning to set up a cotton price stabilization fund by imposing cess on exporters.
 
This year, India’s cotton exports are likely to touch 10 million bales of 170 kg each, compared to last year’s exports of about 12 million bales.
 
Earlier, the Cotton Advisory Board estimated India’s cotton exports this year at 8.5 million bales, but the depreciation in the Indian currency vis-à-vis global currencies, including the US dollar, is working in favour of exporters.
 

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

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

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Neel Sawhney
One Friday

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search