Many Textile Associations In India Require Cotton Export Quota.

India

Although domestic cotton production is larger than domestic demand, the textile industry can not buy high-quality cotton because of lack of specific trade policy and raw material quality assurance system.

At present, the second largest job creation industry in the country can not buy enough high-quality cotton because the government allows about 8 million 500 thousand bales of cotton exported, and the Cotton Advisory Committee estimates that the export volume is 5 million 500 thousand packs at the first meeting of the cotton year.

From the beginning of the 2009-10 cotton industry, the textile industry made a vigorous appeal for cotton production.

Exporting 8 million 500 thousand packages of quality cotton, ending inventory will be reduced to 38 million 500 thousand packages. At the meeting held in July 30, 2010, the cotton Committee estimated that the final inventory will be 40 million 500 thousand packs and export 8 million 300 thousand packages, so that the inventory to consumption ratio will drop to 15%, compared with the average world proportion of 33%.

In the past, whenever the inventory ratio was below 20%, cotton prices would rise unusually. Therefore, it is very necessary to keep the inventory to consumption ratio at least 25%, so as to stabilize the price of raw materials and maintain the competitiveness of the textile industry.

Excessive export of cotton has led to a rise in cotton prices, which has become a thorny problem in the entire textile value chain.

Recently, the government issued a notice to release cotton exports from October 1, 2010, no longer included in the list of export restricted products, and at the same time abolished the export licence for cotton.

It is understood that the current export tax of 2500 rupees per ton of cotton will also be abolished.

Cotton prices have increased by about 4000 rupees / candy (355 kg) in less than a month, threatening the survival of the highly labour intensive textile industry.

Traders have already booked most of the cotton harvested in October and November for export. If the cotton exports are all liberalized, the entire textile industry will not survive. At the same time, millions of workers will lose their jobs because of the high price of raw materials.