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    Developing Cotton Bank Strategy &Nbsp, Making Textile Industry Free From Price Fluctuations.

    2010/9/1 9:44:00 47

    Cotton Bank Textile Industry

      

    India

    Mr. Ramesh Kumar Tibrewal, managing director of Coimbatore Jagannath Textile Co., said that it is now time for India to formulate the policy of storing 2-3 years of raw cotton, aiming at helping the cotton textile industry get rid of the crazy price fluctuation.


    He also warned that Bangladesh has replaced India as the second largest in the world.

    Clothing export

    China is the largest exporter of clothing. Now India's third exporters are in danger of being replaced by Vietnam.


    He said that although he purchased cotton from Gujarat, he had to bear sales tax and freight charges of 2000 rupees / candy (excluding cotton price).

    But the same cotton cost to China is only 600 rupees / candy.

    This is because there are many containers pporting goods from China to India, and the freight to China is $100 / container, which is almost negligible.

    For a domestic buyer like him, the tax and shipping cost per kilogram of cotton is 6 rupees / kg. For Chinese buyers, the cost is only 1.8 rupees / kg, so Chinese buyers get huge price advantage in the raw cotton stage.


    He said that the central government should formulate a cotton bank strategy and reserve 1-2 million bales of cotton, which will stabilize domestic market prices when raw materials and prices fluctuate wildly.

    He said that India was the largest clothing exporter ten years ago, but it fell to second place a few years ago. Now it has been replaced by Bangladesh, becoming the third place, while Bangladesh needs to import cotton. In one or two years, Vietnam may replace India and become the third largest clothing exporter in the world.

    He said the development of competitors was at the expense of India, not because the market was expanding.


    He said that although India's industrial capacity may be more

    Cotton yield

    After a year or two, the government should learn from China and start purchasing and storing cotton.

    From March 2009 to March 2010, cotton prices were between 19000 rupees -29500 rupee / candy, but farmers did not benefit from the price spiral.


    He said, because

    raw material

    There is no continuity in price, and there is no growth in the clothing market.

    If the government controls the price of raw materials, if the domestic market can support higher prices, the manufacturing enterprises will turn to the domestic market rather than the export products.

    Cotton Corp in India should help stabilize prices by putting stock into the market rather than trying to raise prices and profit from price fluctuations.

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