Indian textile industry does not approve of the ban on cotton exports

The Indian Textile Industry Lobby Group (including the Raw Cotton and Textile Industry Association) believes that despite the current decline in Indian cotton production during the cotton season, the country should not ban or limit raw cotton exports. This appears to be good news for cotton importing countries such as China, Bangladesh and Vietnam. It is also very good for Indian cotton exporters.

The Indian Textile Commissioner recently stated that in the 2012-2013 fiscal year, India’s cotton production will decline by about 5% to 33.4 million bales (170 kg/bbl), compared with 35.3 million bales in the 2011–2012 fiscal year. This figure may fall or rise in future estimates. Therefore, people in the industry fear that the Indian government may ban or restrict cotton exports as before.

However, with the strong opposition of cotton producers' trade lobby groups and textile mill trading groups, such fears are obviously superfluous. DK Nair, secretary-general of the Indian Federation of Textile Industry, stated that they requested the Indian government to not restrict cotton exports during the current cotton season. Referring to the reasons for this, he explained: “We hope that the government will pursue an open and universal licensing policy to allow the cotton market to follow its own rules, because uncertainty cannot help anyone.” “The best case is the free exportation of the Indian textile industry. And importing cotton, yarn or fabric. Second, we did not foresee the shortage of cotton, so we can see no reason for the government to prohibit or restrict cotton exports."

Vishwanathan, secretary-general of the Indian Cotton Federation, said: “India should not ban cotton exports because the country’s cotton stocks are very abundant, while domestic consumption has fallen sharply. There is ample supply of cotton exports.” He added: “The measures for limiting electricity have been greatly weakened. The operation of Tamil Nadu, which accounts for 50% of the capacity of India's cotton spinning industry.The Indian cotton yarn market is currently in a downturn. Cotton yarn export growth, but since the local market growth slowed, cotton spinning companies have no choice but to Export goods at a low price."

K Selvaraju, Secretary-General of the South Indian Textile Association, represented the interests of Tamil Nadu and other southern state textile mills. He said that China's cotton imports are expected to decline, which may affect the Indian cotton exports in the current cotton season. “In addition, the current global cotton stock utilization rate for the cotton season is estimated to be 74%, a record high in recent years. Therefore, I do not think there will be a shortage of domestic cotton in India, so there is no need to prohibit or restrict cotton exports.”