Home / Knowledge / News / Textiles / Worldwide impact of Indian cotton export ban – Special report
Worldwide impact of Indian cotton export ban – Special report
07
May '10
In the month of April, the Government of India, on pressure from the stake holders in the textile value-chain imposed a ban on fresh registrations of cotton export contracts, with the Office of the Textile Commissioner in Mumbai along with which it also imposed a punitive export duty of Rs 2,500 per ton, thereafter.

The repercussion of this decision to ban as well as impose export duty was felt across in most of the textile sectors in countries which imported cotton in large volumes from India, like China, Bangladesh, Vietnam and Pakistan. In fact, India was turning out to be the biggest exporter of cotton to China in 2010, and in the process had replaced the US from the pedestal.

Fibre2fashion in its quest to bring up to date information to its readers undertook a survey in each of the countries which imported from India, along with those countries which exported cotton from their shores like the US and Egypt, to understand the impact of the decision taken by India to ban exports of cotton. For cotton importing countries it created a totally negative impact, while cotton exporting countries could not conceal their joy. Read further to know the reasons.

First considering the impact of the decision in India itself, the immediate impact was felt on prices of cotton. Prices of raw cotton of Shankar-6 variety grown in Gujarat, which is also one of the biggest cotton exporting state in India fell by Rs 2,000 per candy (1 candy=356 kg), which was the ultimate aim of the government and in one stroke the government was able to control the flare-up in prices, a decision which was lauded by the spinning and apparel export sector, but came under fire from farmers, ginners and cotton exporters.

However cotton bodies and farmers have not taken this decision lightly. Recently ginners had given a call for strike which they pulled off at the last moment, after they received assurances from the government. According to the Cotton Association of India, “Any change in the policy of allowing free and unhindered exports would prove detrimental to the reputation of the country as a reliable and continuous supplier of cotton”.

The impact on the Pakistan textile sector is expected to be more. According to the All Pakistan Textile Mills Association (APTMA) a few textile mills hold stocks of two to three months, while the majority have stocks which will last them just around 30-40 days, after which the situation will become dire and possibilities of cotton prices increasing in global markets, post the Indian decision, in the near future are also potent, which could put the survival of the spinning units in a jeopardy.

Considering that China is the biggest cotton importer in the world and India was turning out to be the biggest supplier of cotton in 2010, the impact of this decision will be compelling. The State-owned, Assets Supervision and Administration Commission said that, China, the world's largest cotton consumer faces an imminent cotton shortage after India halted exports and demand climbed.

Must ReadView All

Textiles | On 27th Feb 2017

Textile industry can boost South African economy: Minister

The textile industry is one of the most strategic platforms through...

Textiles | On 27th Feb 2017

KBR bags LBED revamp contract for LG Chem's ethylene plant

KBR, Inc has bagged a technology licensing and basic engineering...

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Marten Alkhagen
Swerea IVF AB

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
February 2017

February 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