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    India Decides To Cancel Cotton Export Ban

    2012/3/12 9:58:00 24

    Trade Industry Market

    Anand Sharma, Minister of Commerce and industry of India, said in March 11th that the government had decided to cancel the ban on cotton exports issued on the 5 th of this month and will be officially announced on 12.


    India is the second largest cotton producer in the world.

    China

    It is the largest importer of cotton in India.

    A week ago, India's Foreign Trade Bureau suddenly decided to ban cotton exports, saying it was to ensure domestic cotton supply.

    However, the India commercial standard quoted India industry analysts as saying that the government of India suddenly decided to ban cotton exports and worry about China's recent import of India cotton.


    According to a research report quoted by Barclays Capital, the number of cotton imports from India has increased significantly in recent years, especially in the second half of 2011 and early 2012. India has surpassed the United States as the largest source of cotton imports in China.


    The prohibition of export of cotton will lead to India's domestic cotton

    purchasing price

    The fall was decided immediately by the strong opposition of farmers and cotton industry in India.

    The Minister of agriculture of India and officials of the main cotton producing areas in India publicly denounced the ban, forcing India Prime Minister Singer to ask the cabinet ministers' joint meeting to reconsider two days after the ban was introduced.


    Bangladesh and China also point out that India's cotton export ban does not conform to international trade norms.

    Sheth, chairman of India Cotton Association, said: "frequent changes in export policy will harm India.

    international market

    To stabilize supplier's reputation and lead to disputes, we all hope that policies will continue and be clear. "


    In the context of the government's reduction of this year's economic growth target to 7.5%, the increase in cotton production and the downturn in the downstream consumption of cotton, it will offset the positive effect of the rising price of cotton purchase and storage. Meanwhile, the export of cotton in India has been volatile. In the case of the slow start of the yarn market, it is expected that the cotton market will remain weak in the short term.

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