India Limits Cotton Export Crisis

Although the government has recently taken measures to ensure that it only exports excess in 2010-11. cotton But Exporter Eager to register cotton export contracts, the textile industry is very worried that by December 2011 India There may be no final inventory in China.

The India textile Commissioner's office allowed the registration of cotton export contracts from October 1st and shipment from November 1st. It was estimated that the annual cotton production (October 2010 -2011 September) could export 5 million 500 thousand bales of cotton, but the number of registered applications within 10 days had reached 5 million 500 thousand bales.

The government estimates that the final inventory will be 4 million 50 thousand packages in 2009-10 years, and about 600-650 packages of processed cotton are expected to enter the market by the end of November. India Textile Industry Federation (CITI) claims that India's current cotton consumption exceeds 2 million 200 thousand bales per month.

Therefore, by November 2010, the supply of cotton will be about 10 million packages, of which the exporter has already purchased 5 million 500 thousand packages, and about 4 million 500 thousand packages need to be digested domestically, so the final inventory will almost fall to zero. This makes the domestic textile industry extremely nervous.

CITI President Shishir Jaipuria sent a letter to the prime minister, referring to the fear of the domestic textile industry. He said that if there were 5 million 500 thousand bales of cotton exported during this period, there might be little cotton stocks in India. This will lead to cotton famine in India, textile factories will be forced to shut down or slash production.

The domestic textile industry has been struggling with price pressure, especially for garment exporting enterprises. Cotton prices rose to 41000 rupees / candy in October, compared to 23000 rupees in 2009. The textile factory complained that even at such a high price, cotton could not be bought.

CITI requested that the export time of the registered cotton contract should be postponed to January 2011, and the quantity of export from January 2011 should not exceed 1 million bales. The Federation also said it is obvious that many of the export contracts applied for registration are speculative. Therefore, the Federation requires that those who do not ship within the stipulated time should not allow them to extend their export time and refuse to apply for export registration again.