Home / Knowledge / News / Textiles / Govt contemplates a temporary ban on cotton exports
Govt contemplates a temporary ban on cotton exports
04
Jul '08
The spiraling prices of cotton in the past few months has caught the government off-guard. Now, it has plans to impose a temporary ban on export of the raw material.

It is still in the proposal stages and the textile ministry is evaluating it with a intent to submit recommendations to the finance ministry next week.

Cotton prices have surged by a staggering 38 percent since last year and almost all the textile enterprises are anticipating a 10 percent drop in their profit margins due to this hike.

In an exclusive interview with Fibre2fashion, Mr KK Baheti Birla, President and CEO of Cotsyn stated, “Government should ban export of cotton and must permit export of value added items like yarn & fabrics. Since cotton is hoarded by MNCs and traders for purpose of speculation, the cost of cotton is increasing abruptly. Government should also put a sealing on quantity, allowing only 20 to 25 percent of the production to be exported. This is one of the most effective ways of putting an end to speculation by MNCs and helping local mills get sufficient cotton for consumption.”

Ironically, prices for cotton are rising despite an estimated record production of 31.5 million bales against the domestic consumption of 24.1 million bales. On the export front, outflow of the raw material is expected to rise by about 47 percent to 8.5 million bales in the season 2007-08 which is in striking contrast to 5.8 million bales exported last year. In fact, according to Cotton Corporation of India (CCI), exports may soar up to 9.6 million bales in 2008-09.

The ministry firmly believes that prices have risen largely due to unrestricted exports and hoarding activities of the middlemen. The government would definitely take a proactive stance in bringing down these exorbitant rates even if it has to ban cotton exports and provide a reduction in import duty.

Fibre2fashion New Desk - India


Must ReadView All

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

Textiles | On 19th Feb 2018

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

The largest global spandex producer Hyosung Corporation of South...

Courtesy: VF Corporation

Apparel/Garments | On 19th Feb 2018

VF Corp Q4 revenue climbs 20% to $3.6 billion

The revenue of VF Corporation, a global leader in branded lifestyle...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Urmil Arya

Sushila International, a well established textile organisation established ...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kerem Durdag
Biovation II LLC

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

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

Ritu Kumar
Label Ritu Kumar

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

Karan Arora
Karan Arora

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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