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

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranav Mishra
Huemn

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

Judy Frater
Somaiya Kala Vidya

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search