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    India Increases Cotton Exports To Reduce Textile Production Indefinitely

    2011/6/17 9:57:00 58

    India Cotton Export

    India

    Spinning enterprise

    It has decided to reduce production by 1/3 from May 24th to reduce more than 500 million kilograms of factory backlog.

    yarn

    Inventory, but by the end of May, they have decided to move again.

    Reduction of production

    The behavior was extended for two weeks because the yarn inventory was only slightly improved.


    However, DrSelvaraju, Secretary General of the India Textile Mills Association (SIMA), said that the production will not only be two weeks, but will remain indefinitely until the stock returns to normal.


    He said that the current situation is very bad, textile mills are suffering huge losses, inventory has not yet been cleaned up, domestic and export demand has not yet returned to normal level.

    Generally speaking, the domestic yarn consumption in India is about 210 million kilograms per year, but due to the pollution problem in Rupp and ERODE area, the current consumption is only about 150 million kilograms, almost 60 million kilograms. According to the current production situation of the whole country, the yarn export should be 100 million kilograms, but now it is only about 5000-5500 kilograms. The reason is mainly that the textile factory has stopped exporting in the past 2-3 months.


    Recently, many countries and buyers are reluctant to sign contracts with India yarn manufacturers. Many domestic buyers also offer many payment terms. All spinning mills have high cost cotton stocks.

    Based on these factors, the government has increased the cotton export ceiling from 935 thousand tons to 1 million 105 thousand tons this year, but this will lead to a shortage of domestic cotton.

    According to previous assessments, the end of 2011 inventory of cotton was 467 thousand and 500 tons, which means that the inventory consumption ratio was only about 10%, while in China and other countries, the inventory consumption ratio was about 40-50%.


    He said that the government's decision to increase exports of cotton will also lead to hundreds of spinning factories being forced to close in August, September and October until new cotton comes into the next year.

    In fact, the cotton advisory committee recently estimated the state of the state and estimated that the output of cotton in India this year was only 5 million 253 thousand tons, much lower than that predicted by the Ministry of agriculture of India 5 million 763 thousand tons.


    In addition, at present, India cotton merchants have about 255 thousand tons of cotton in hand. They do not plan to sell them to the domestic spinning mills, but to export them, and the cotton in the hands of farmers has long been sold out, so the policy of expanding exports will not benefit farmers.

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