India Once Again Banned Cotton Exports To &Nbsp, And Domestic Textile And Garment Enterprises Were Unhappy.

In March 5th, the Ministry of Commerce and industry of India abruptly issued a ban on cotton exports, and decided to ban India's cotton exports from now on, including export orders registered with its government.

China Cotton Association issued a statement condemning

One stone stirred up waves, India restrictions

The India Cotton Association (China Cotton Association) issued a solemn statement entitled "India's policy of banning cotton export policy seriously disrupting the international trade order". This is a solemn statement issued by the China Cotton Association (hereinafter referred to as "China Cotton Association"). It is hoped that the India government will promptly correct this wrong policy that disrupts the international trade order and abide by the rules of international trade.

"This irresponsible act has resulted in the failure of a large number of contracts signed."

China Cotton Association said.

The China Cotton Association sent a letter to the Ministry of Commerce and industry of India and the India Cotton Association on behalf of the industry and expressed strong protest against the India government.

The statement said that the government of India frequently issued a policy of banning the export of cotton, causing Chinese enterprises to suffer undue huge losses.

This will not only disrupt the global cotton trade order, but also distort international cotton prices, which will also bring risks and huge losses to textile enterprises and traders.

Data show that India is the second largest exporter of cotton in the world, and the India limit.

Some analysts said that at present, India has exported about 1 million 500 thousand tons of cotton, which has achieved most of the export volume in the past years, so it will not have a big impact on the supply of global cotton in 2011/2012.

The restrictions on export policy will stimulate cotton prices to rise in recent times. However, judging from the situation that global cotton supply exceeds demand and the downstream demand continues to be weak, it is difficult to make cotton prices very big this year.

Domestic textile enterprises have different influences.

Judging from the domestic market, China is the main importer of cotton in India.

Data show that in 2011, India's cotton production and export volume ranked second in the world and one of the main importers of cotton in China.

In 2011, China imported 973 thousand tons of cotton from India, accounting for 28.9% of the total imports, accounting for 9.7% of the apparent consumption. In January 2012, because of the relatively low cotton prices in India, China imported 150 thousand tons of cotton from India, accounting for 46.1% of the total imports.

It can be seen that after the stop of export of cotton in India, the supply of domestic cotton market also has certain influence.

To this end, the reporter interviewed some of the domestic textile and apparel listed companies, to see how they look at the abolition of India's cotton export policy on the company's impact.

Shan Shan shares (600884, stock bar) Dong Qian Qian accepts "Securities Daily" reporter's interview, said that India's restrictions on cotton exports have a great impact on knitting enterprises, but it has little impact on brand clothing enterprises.

As a large and well-known brand of Shanshan stock company, its main business is clothing, its products include suits, shirts, casual wear and so on. In the view of Qian Cheng, India limits cotton exports to international cotton prices.

"The rise in cotton prices has an impact on the knitting business of the company, but it has little impact on the brand, and the main source of profits for the company's brand products."

Qian Cheng said.

Similarly, the news bird's Dong Fang Fang Fang told India's restrictions on cotton exports that the impact on the company was not great.

Fang Xiaobo told reporters that the rise of cotton prices had a greater impact on the single textile processing enterprises, while the news birds were mainly engaged in high-end brand clothing industry. The increase in the cost of downstream products reflected little change in the cost of brand clothing. Therefore, overall, the rise in cotton prices had little impact on the company.

Statistics show that as a garment and other fiber products manufacturing industry, the birds are mainly engaged in the series of men's clothing such as wedding bird clothing, suits and shirts.

Although last year's entire garment industry was not booming, the good news birds achieved good results.

The main reason for the growth of performance is that the company's main brand, the news birds, still achieve strong growth, while the gross profit margin continues to increase steadily. At the same time, the sales revenue and profits have increased at a high speed.

Fu Tian shares (002083, stock bar) said that the impact is not large.

After the rise in cotton prices, we all felt that the impact on the pure textile enterprises was greater, especially for the enterprises mainly based on home textiles. However, the reporter learned from the interview with the shares of India that the restrictions on cotton exports to the company were not large or even very small.

It is understood that Fu sun shares is a large enterprise group mainly engaged in household textiles and mainly engaged in pesticide, chemical, hot and other diversified industries. It is the largest and largest export enterprise in China, specializing in the production and sale of high-grade and high-grade towel blanket products, bedding and decorative cloth products. Its export and import share is relatively large.

In an interview with the Securities Daily, a senior executive of Fu Tian said that India's export of cotton has played a supporting role in the price of global cotton, which is not good news for the entire textile industry. However, it has little impact on the stock market.

According to the executive, although the annual price of imported cotton is very low, although the price of imported cotton is very low, and the company is importing cotton from multiple channels instead of a single country, which has been imported from the United States, Pakistan, Brazil and other countries. Therefore, India's limited export has little impact on the company.

In the view of these executives, India's cotton restricted export has little impact on domestic cotton prices, because domestic cotton storage policy has made it impossible for cotton prices to continue to fall. Under the macro economic background, textile enterprises are facing the influence of upstream and downstream supply and demand factors. China's cotton prices will not increase too much in the future. If cotton continues to rise, the price of products will also rise for the company's exports.

Although the listed companies in the interview say that the India policy has little impact on the company, some people in the industry still expressed concern that "India's ban on cotton exports and the price of imported cotton and yarns will increase substantially, which may affect the competitiveness of domestic production of clothing products."