Dhaka to pay premium for assured cotton supply - India

[zip]

India should stop every export/import from bangladesh ..

 

[livingdead]

I do not find fault with exporting cotton to Bangladesh as part of geo politics. And India manufactures 27 million bales of cotton while the assured export to Bangladesh is around 1.5 million bales - so not a big amount but not sure whether there are grades of cotton which India has committed to export within the 27 million. But I would find fault with the Indian government if it wants to export cotton to other countries on commercial basis. Two years back garment manufacturers in Tiruppur had to pay high price for the cotton due to the artificial demand created by hoarders. Government needs to secure local demand prior to trying to export cotton. Tiruppur is the largest garment manufacturing town in India and exports $2.5 billion worth of garments every year.

Then garment manufacturers in tiruppur should sign long term contracts or source it from outside. Its all business, why should govt side with garment manufacturers and not cotton farmers?

 

[Sashan]

Then garment manufacturers in tiruppur should sign long term contracts or source it from outside. Its all business, why should govt side with garment manufacturers and not cotton farmers?

The farmers were not getting benefited. The hoarders or the middlemen were the ones who were getting benefited. The farmers were paid a pittance by the middlemen and they hoard them to artificially bump up the demand and price.

 

[Bhairava]

The farmers were not getting benefited. The hoarders or the middlemen were the ones who were getting benefited. The farmers were paid a pittance by the middlemen and they hoard them to artificially bump up the demand and price.

Sharad Pawar....

 

[livingdead]

The farmers were not getting benefited. The hoarders or the middlemen were the ones who were getting benefited. The farmers were paid a pittance by the middlemen and they hoard them to artificially bump up the demand and price.

Why should not middlemen benefit, they are doing their job of making the transaction smooth for both sides. What is stopping farmers from making an union and striking a deal with manufacturers?

 

[Sashan]

Sharad Pawar....

This guy was supporting BT cotton while his ministry was blaming the BT cotton when farmers were committing suicide due to less yield and increased pest problems.

 

[Sashan]

Why should not middlemen benefit, they are doing their job of making the transaction smooth for both sides. What is stopping farmers from making an union and striking a deal with manufacturers?

Hoarding has always been an issue in India. Hoarding leads to artificial price inflation especially in the food sector. But with cotton, the middlemen say buy the cotton at $1 per 100 bales from farmers and hoard it creating an artificial demand and the price goes up to $10 per 100 bales. The garment manufacturers buy it at that price but they are competing internationally. So you know the damage here. Farmers are not getting paid and garment manufacturers are losing out with international competition.

There is one more type of hoarding where a country hoards cotton not for using it immediately but to guard against price rise of cotton in future. It happened with India and China where India accused China of hoarding cotton and banning the exports. Now Bangladesh buys cotton at a premium from India but would lose out to China with the Bangladesh garments priced higher than Chinese ones.

 

[livingdead]

Hoarding has always been an issue in India. Hoarding leads to artificial price inflation especially in the food sector. But with cotton, the middlemen say buy the cotton at $1 per 100 bales from farmers and hoard it creating an artificial demand and the price goes up to $10 per 100 bales. The garment manufacturers buy it at that price but they are competing internationally. So you know the damage here. Farmers are not getting paid and garment manufacturers are losing out with international competition.

There is one more type of hoarding where a country hoards cotton not for using it immediately but to guard against price rise of cotton in future. It happened with India and China where India accused China of hoarding cotton and banning the exports. Now Bangladesh buys cotton at a premium from India but would lose out to China with the Bangladesh garments priced higher than Chinese ones.

There is nothing wrong in hoarding as such unless there is a cartel operating. If hoarding leads to increase in price, at every price point there is a chance that one hoarder will say 'enough' and sell his ware. Not all hoarder aim at same target price.

Anyway, my question still remains, what stops cotton farmers from dealing with manufacturers and entering into long term future contract. Both will get better price, right?

 

[cloud_9]

The farmers were paid a pittance by the middlemen and they hoard them to artificially bump up the demand and price.

Are you sure that you can hoard raw cotton....

 

[Rajaraja Chola]

1. We should see this as another covert move to ruin our textiles/RMG sector. India had done that first time when an unsuspecting Gen Zia had accepted an Indian EXIM Bank credit line not realizing they were going to destroy our textile industry with import of third class Indian "lakkar jhakkar" textile machinery.

2. This agreement, if inked, will give a leverage to India to dictate terms at will in this sector and elsewhere. Say there is a price rise in the international market. India has a million excuses up its sleeves to drag feet.

3. When an agreement is made it is made with a sincere friend. His track record of keeping commitments is evaluated. India is an insincere party whose leaders have routinely lied to us.

I dunoo how such dumb@$$ could jump without reading the whole article...
Ever since india lifted tax on BD textiles, BD goods are flooding indian markets for their low cost... What more u want? still whining like a dog...
Many units have closed here to open shops in BD.. In essence many have lost jobs in india and BD got new investments...
And u guys troll for the sake of trolling......

Speaking of cotton, we should also look at cotton in Pakistan which is another big producer. I have seen many Pakistan bed sheet and towel producers in Bangladesh importing cotton from Pakistan. My guess is that Pakistan is already a big source of raw cotton for us. Whatever happened to aazidane the textile dude?

Another comedian... Last time i saw, pakistan protested the ban on cotton exports in India... They are importing cotton from india..
If u dont know anything, just don throw utter BS...

 

[Sashan]

There is nothing wrong in hoarding as such unless there is a cartel operating. If hoarding leads to increase in price, at every price point there is a chance that one hoarder will say 'enough' and sell his ware. Not all hoarder aim at same target price.

Anyway, my question still remains, what stops cotton farmers from dealing with manufacturers and entering into long term future contract. Both will get better price, right?

The problem is the cartels are the main reason for hoarding. Here is a news article which provides a mirror to the issue of hoarding and its effects.(it does not explain hoarding but showcases the effects)

India Food Inflation Slows After Singh Curbs Hoarding - Bloomberg

I do not have an idea on why the cotton farmers and manufacturers do not have a contract. Maybe it is due to the logistics.

Are you sure that you can hoard raw cotton....

Here is a news clip about India blaming China for hoarding cotton. The same article talks about U.S department of Agriculture accusing China of the same.


India Bans Cotton Exports... Is a Run on Pants Imminent? | Wall Street Daily

 

[scholseys]

Crappy deal! we already get enough cotton at a fair price by international rate. Cotton price is at the lowest in 2 years due to world recession and lack of demand.

"Dear Sir,


We offer 500 mts Indian raw cotton, Shankar-6(GUJARAT), staple: 29 mm, strength: 29 GPT, mic: 3.7-4.9 ncl, moisture upto 8 % @ 82.00 us cents / lbs , CFR CHITTAGONG PORT , prompt shipment , payment against signt lc opened from international bank only.


Offer valid up to 4.00 pm (Indian time).


OFFER SUBJECT TO INDIAN GOVERNMENT COTTON EXPORT POLICY UNCHANGED, "

This is the offer i got 5 days ago and 3 months ago the same cotton was selling for 102 cents. This is just a ploy by Indian lobbyists and awami dalals to dump Indian cotton at a higher price, nothing more or nothing less.


This is the cotton price of Uzbekistan i had yesterday

"Dear Sir,


WE ARE PLEASED TO OFFER SUBJECT OUR FINAL CONFIRMATION AS FOLLOWS :



1°) CIS TADJIKISTAN COTTON – Mic 3.8/4.9 Ncl PSI 29 GPT

150 MTNS STRICT MIDDLING 1.1/8 @92.00 C/LB

CANDF CHITTAGONG – FF – NLWF- JULY 2012 SHIPMENT – SHIPT FROM MERSIN TURKEY.



2°) CIS UZBEKISTAN COTTON – Mic 3.8/4.9 Ncl PSI 29 GPT

400 MTNS STRICT MIDDLING 1.1/8 @92.00 C/LB

CANDF CHITTAGONG – FF – NLWF- END OF AUGUST 2012 SHIPMENT – SHIPT FROM RIGA
LATVIA.




3°) CIS UZBEKISTAN ELS COTTON – Mic 3.8/4.9 Ncl –PSI 36 GPT

100 MTNS PERVYI 1.7/16 @ 116.50 C/LB"

Indian cotton is required for some yarn and uzbek cotton is required for better quality yarn, it all depends what the customer is looking for. This deal shows corruption at the highest level of Bangladeshi Indian Dalal government.

CANDF CHITTAGONG – JULY 2012 SHIPT

Agree, why would India accept a fixed price when the price of cotton rises year by year.

Don't try taking India for a free ride. Though Bangladesh may have the last laugh, if cotton rises above the agreed price set.

You are an an ignorant Indian troll of the highest order who comments on things with no idea. Couple of years ago cotton was going for $1.70 to 1.80. Now it is 83, so please depart since you have been exposed with your pants down.

 

[scholseys]

India should stop every export/import from bangladesh ..

You mean India should stop exporting cotton with the second largest rmg producer in the world? your cotton farmers would starve to death and there would be communal riots. Last time you stopped exporting cotton, you didn't even last a week, your poor hungry farmers went bonkers. Best of luck, clueless Indian.

 

[INDIC]

You mean India should stop exporting cotton with the second largest rmg producer in the world? your cotton farmers would starve to death and there would be communal riots. Last time you stopped exporting cotton, you didn't even last a week, your poor hungry farmers went bonkers. Best of luck, clueless Indian.

Shifting to other cash crop is not a difficult task. My uncles shifted from mustard to sunflower farming instantly.

 

[scholseys]

Shifting to other cash crop is not a difficult task. My uncles shifted from mustard to sunflower farming instantly.

what happens to your cotton trade then? seems like you have no idea about business do you? Bd has a trade deficit with India...why are you guys complaining like idiots?