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

US & EU retailers release industry approach to GDPR

Apparel/Garments | On 24th May 2018

US & EU retailers release industry approach to GDPR

The Washington, D.C.-based National Retail Federation and...

Global cotton consumption to reach record in 2018-19: USDA

Textiles | On 24th May 2018

Global cotton consumption to reach record in 2018-19: USDA

Reflecting continued growth in the global economy, world cotton mill...

Courtesy: Nanollose

Textiles | On 24th May 2018

Nanollose develops fabric from coconuts

Australian technology company Nanollose has developed a sustainable...

Interviews View All

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urmil Arya

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

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Eamonn Tighe
Nature Works LLC

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

Paolo Ocleppo
Sandvik Hyperion

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Jay Ramrakhiani
Occasions Elegance Wear

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search