India Cotton Export Restrictive Policy Triggers "Contract" Dispute

To ensure the supply of raw materials for the domestic cotton textile industry, the India authorities have adopted export licensing restrictions on cotton since May 21st. However, the move was strongly opposed by importers from Pakistan and Bangladesh. They asked Indian cotton growers to carry out the signed cotton export contract, otherwise they would ask for payment of liquidated damages for the contract.

At present, the India commerce bureau is investigating the matter to further understand the amount and amount of cotton export contracts signed.

It is reported that Bangladesh is a major textile power country in South Asia. Annual textile exports account for about 80% of total exports. Although Pakistan is a large cotton producing country, it needs to import about 3 million bales of cotton annually from India.

India's restrictions on cotton exports have obviously affected the textile industry of Bangladesh and Bangladesh. At present, exporters and Mencius and Pakistan are anxiously waiting for the Indian authorities to respond to the matter.