BD,US to protest cotton export ban by India

[CaPtAiN_pLaNeT]

BD,US to protest cotton export ban by India

BD,US to protest cotton export ban by India

Syful Islam

The United States (US) will protest recent 'arbitrary' cotton export ban by India while Bangladesh will voice its concern on the issue in the next month's cotton council meeting in Geneva, officials said Thursday.

"I had talks with the US officials concerned this week in New York who said they will protest the cotton export ban by India in Geneva next month. They sought Bangladesh's support in this connection," Commerce Secretary M Ghulam Hossain told the FE.

"US officials think that the Indian decision was arbitrary. They believe that no situation had arisen that justifies the cotton export ban," Mr Hossain said who met US officials after a United Nations Conference on Trade and Development (UNCTAD) meeting.

"We are not a member of Cotton Council International (CCI). But we are expecting to attend the meet as an observer where we will voice concern."

Mr Hossain said a similar ban in April 2010 raised global cotton prices manifold mounting the sufferings for Bangladesh's textile industry.

He said during the meeting with his counterpart in India later this month he will also raise the issue. "The sudden cotton export ban by India has destabilised the market and put our textile sector in dire straits."

"When an international contract is signed and letters of credit (L/Cs) are opened, everyone is bound to entertain those. India in 2010 didn't entertain those, and this year it had set condition for the contracts signed before the ban was imposed," the commerce secretary said.

With the ban imposed by India on March 5 this year, Bangladesh's contracts and L/Cs for 150,000 pounds of cotton have become stuck. Amid protests by local farmers and traders, India on March 11 said that it will entertain the contracts for which Let Export Order (LEO) has been issued.

Mr Hossain said of the total cotton contracts got stuck; only around 10 per cent got the LEO meaning that India won't entertain the contracts for the rest 90 per cent.

Bangladesh meets nearly 45 per cent of its cotton needs through importing the commodity from India, the second-largest cotton exporter in the world.

Statistics show that the April 2010 ban by India raised global cotton price to 2.40 dollar per pound from 60 US cent. Bangladesh's textile sector experienced a massive blow that time.

Mr Hossain, quoting the stakeholders, said they think India imposed the cotton export ban to grab the Bangladesh's yearn market.

The stakeholders have already urged the government to protest the issue through Word Trade Organisation (WTO) system.

On Wednesday, a meeting at the ministry of commerce decided that apart from steps by the government, the private sector will raise the issue with Indian business bodies to pursue their government.

Besides, the government will find alternative cotton sources so that dependence on India is reduced.

In an instant reaction after the ban was imposed President of Bangladesh Textile Mills Association (BTMA) Jahangir Alamin termed the move as shocking from Bangladesh's textile industry.

"The ban will put a very negative impact on our industry," he told the FE.

President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Selim Osman said that country's apparel industry will face a massive setback due to the cotton export ban.

 

[Ammyy]

Why the hell Bangladesh want evil Indian cotton for their mills ????

Dnt use it .... It may be destroy your economy

 

[kalu_miah]

This means that India cannot be a reliable supplier, for not just cotton, but any other products. We need to minimize depending on India for anything.

 

[Hulk]

Cannot live without Indian cotton and talks about boycotting our stuff. These kiddos have to come down to earth.

 

[scholseys]

This is old news, the cotton ban has been lifted a long time ago. It was only there for a week or so.

 

[boltu]

Weren't we suppose to get cotton from Uzbekistan??What happened to that!!

 

[Nothing]

Ban is lifted after Evilest of Evil Narendra Modi talked to Central government with tough ton ....
BD should not buy this cotton .... common where is your national proud BD members who keep shouting against India ..

 

[Pakistanisage]

Pakistan should Ban Export of Raw cotton also. We need to move up the food chain and use our Cotton to export apparel only. Ban the Cotton export specially to Bangladesh. Remember what Bangladesh did by voting against Pakistan in European market. Do not sell raw Cotton to Bangaldesh and sell apparel to world market.

 

[Nothing]

Weren't we suppose to get cotton from Uzbekistan??What happened to that!!

It is good plan , but this will reduce competitiveness of textile industry in BD, as it will take more cost to ship ... may be 4-5 times more than what it cost to import from India and again it will be time consuming and according to my knowledge quality is also bit of concern for many manufacturer in BD .

Fro thread starter use your mind before starting any thread an still you want to start flame war ... and show your hate for India with closed mind ... we are ready to give you due answer...

 

[scholseys]

Weren't we suppose to get cotton from Uzbekistan??What happened to that!!

We always get CIS cotton (uzbekistan), CIS cotton is more expensive than Indian cotton, it is less contaminated. The reason mill folks retaliated for India's ban on cotton because it disrupts the global cotton market. Indian mills can then buy it for cheap and sell the yarn for cheap to other parts of the world, which other mills of other countries wont have the luxury of doing, thus spinning market of other countries will fall. Indian cotton farmers were also furious for the cotton export ban for they had to sell on the cheap together with everything the ban on cotton export only lasted for a week or so. Also there has been a good cotton growth in India.

Source: Own bunch of spinning mills in Bangladesh.

 

[livingdead]

Well as with everything else there are multiple parties with opposing interest. The mill owners in India complained that due to crop failure this year, govt has to ban export else the mill owners will face consequences.
After ban was declared, farmers started complaining and cotton producing state like gujrat and maharastra pressurized GoI into some compromise.
Now it depends which lobby strongest.

Where does bangladesh and USA figure in all these? Nowhere.(except the promises made already which will hurt the long term export prospects of India)

Export ban is not new in India, GoI banned rice export to control inflation, similarly banned onion export and started import from pakistan when onion crop failed.

 

[scholseys]

Well as with everything else there are multiple parties with opposing interest. The mill owners in India complained that due to crop failure this year, govt has to ban export else the mill owners will face consequences.
After ban was declared, farmers started complaining and cotton producing state like gujrat and maharastra pressurized GoI into some compromise.
Now it depends which lobby strongest.

Where does bangladesh and USA figure in all these? Nowhere.(except the promises made already which will hurt the long term export prospects of India)

bro, the ban has been lifted. All is well.

 

[livingdead]

bro, the ban has been lifted. All is well.

Well I am just explaining how the politicians and govt of India makes decision. many bangladeshis read local language newspapers full of crap and conspiracy.
Also you did not explain why mill owners decided to pressurize ban this year(global dominace by banning cotton sound too close to a conspiracy), crop failure in key states is the information they used.

As with any govt in any other country, the GoI's decisions are influenced by corporate lobby, farmer lobby, future election predictions etc.
Offtopic, It may sound funny, but a crop like Onion can defeat a govt in power( happened to BJP in a state election)