Home / Knowledge / News / Textiles / India has contributed to surge in cotton prices – Eurocoton
India has contributed to surge in cotton prices – Eurocoton
Nov '10
International textile lobby groups like the Europe-based Eurocoton and ITKIB, Mexico-based Canaintex and US-based National Council of Textile organizations (NCTO) had recently petitioned to their respective governments, against the move of the Indian government to ban or restrict cotton exports.

As is now well-known, cotton output in Pakistan and China and to an extent of the US too, are expected to decline substantially in this cotton season, which has led global cotton prices to touch historic high levels in recent months, and these organizations are blaming the Indian government for putting restrictions on cotton exports.

There are estimates of a record production of Indian cotton at 32.5 million bales (1 bale = 170 kg) in 2010-11 against the projected demand of 26.6 million bales. Against this, India has permitted export of 5.5 million bales in the current season, in order to ensure adequate stocks for its domestic textile industry.

These organizations have called the restrictions as anti-trade, which has caused turmoil in the global cotton markets and that India government has clearly broken WTO rules and must be held to account, as these restrictions have come at a time when global supply is tightening and demand is rising and in the process giving a impetus to cotton prices.

Speaking to fibre2fashion, Mr Haciot Benot, President of Eurocoton said, “We have namely two major concerns. One, the de facto ban of any raw cotton exports in excess of 5.5 million bales of cotton for the current crop year, and a pattern of inconsistent and sometimes contradictory statements over the past year that have caused uncertainty in world markets about the reliability regarding Indian exports of raw cotton.

“These two problems – a restriction on actual exports and a climate of uncertainty whether India is a reliable exporter has contributed to a surge in prices for European and other non-Indian textile producers while creating a subsidy for Indian textile producers and according to the National Cotton Council, Indian textile producers are getting a subsidy of 16 cents per pound, relative to the world price for cotton.

“India itself admits that it has taken these measures, at least in part, allegedly because of price issues. It is notable that the Indian textile industry has been pushing for restrictions since November 2009. This clearly indicates that the Indian government actions are primarily price-related and are designed to promote the Indian textile firm market position and have nothing to do with supply concerns.

“Also, Indian press reports indicate that the primary goal of the Indian government is price related. In addition, Indian stocks have been rising significantly as the Indian crop has expanded to record levels. Instead of releasing excess supply onto world markets, the Indian government has instead held it back, thus contributing to the run up in the world price for cotton.

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search