CITI Said: India Should Straighten Out The Relationship Between Cotton Exports And Free Exports.
On July 31st, D.K.Nair, chairman of the India Textile Industry Association (CITI), commented on the government's no ban on cotton exports.
He said that India is the second largest cotton producing country, consumer country and export country in the world.
India is also the largest producer and exporter of cotton textile products.
This year, the world cotton production gap is very large, and India cotton harvest.
Although output increased 10% from last year to a record high, cotton prices in India increased by 35% a year, as exports also reached a record high of nearly 10 million packs, compared with 5 million 800 thousand exports last year.
More than half of India's cotton products are used for export, but the international market demand is shrinking. India textile exporters can not pass the cotton price increase to buyers.
Looking at the whole situation, we must make a choice between cotton free export and textile products export competition.
The textile industry has just recovered from the problem of rupee appreciation, unable to digest the rise in cotton prices and continue to export.
Therefore, the key question is whether we will maximize cotton value in our downstream industries, create benefits, expand employment, or export 1/3 cotton output to China and Pakistan, and they are the most competitive competitors of India cotton products in the international market.
Ironically, China is the largest textile exporter in India, and Pakistan is one of the largest exporters, especially home textiles.
When India exports cotton to them, India exports textile jobs. When India imports from these countries, India imports the number of unemployed.
Farmers' interests are another issue that should be taken seriously.
What are the benefits they can get without controlling the export of cotton?
It is a common sense that farmers do not export cotton.
India cotton began to enter the market in October, and most of the farmers' cotton sales were in February -3 months.
A careful examination of cotton prices will show that cotton prices increase every year after March, when cotton is already in the hands of cotton ginning and cotton merchants.
Therefore, farmers can only get very limited benefits from rising cotton prices.
Cotton prices do not really depend on exports.
Cotton prices are driven by consumption, or domestic industrial consumption or international industrial consumption.
India's cotton consumption has been increasing substantially. In recent years, the spinning industry has invested heavily, and this trend is doomed to continue.
Therefore, the phenomenon of falling consumption and falling prices does not exist.
Every year, the government carefully examines the cotton economy and announces the lowest cotton price.
But in recent years, cotton prices in India are much higher than the lowest supporting prices.
Therefore, as long as cotton consumption continues to grow, cotton prices will continue to rise, although India's cotton exports continue to expand.
It is very important to distinguish between the boundaries of exports and free exports.
The textile industry has never said that India's cotton should not be exported.
The textile industry only suggests limiting the export of raw cotton, and the export should be surplus cotton.
China and Pakistan are also two major producers and exporters of cotton and cotton textiles. They control cotton exports and ensure domestic demand.
Even in the United States, cotton consumption is very limited in the third largest cotton producing countries in the world, but the United States also controls its cotton exports in a procedural way.
It is very important that the India textile industry consumes 2/3 of India cotton, which makes the textile industry lose money and is not good for the farmers.
If the demand for cotton drops in the international market, neither the foreign textile industry nor the cotton traders will reach out to save the farmers in India.
The interdependence between India textile industry and cotton growers is very close.
If cotton prices are very low, farmers will switch to other crops. If the price of cotton is very high, the textile industry will switch to other fibers or shut down.
Maintaining a proper balance of cotton prices is a long-term interest of farmers and the textile industry.
Maintaining a balanced export balance is the best way to ensure long-term benefits of farmers and the textile industry.
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