India bans cotton exports effective immediately

[behappy]

MUMBAI: India has banned cotton exports with immediate effect, the Directorate General of Foreign Trade (DGFT) said on Monday, as the world’s second-largest exporter of the fibre moves to conserve supplies for local mills.

“Export of cotton has been prohibited till further orders,” the DGFT said in a statement. India is the world’s second largest producer of cotton and most of its shipments go to China, the world’s largest user of the fibre.

“Export against registration certificates already issued will also not be allowed,” the notification said.

India had already exported 8.5 million bales, higher than government estimates made in January of 8.4 million bales of 170 kilograms each for the year, on strong demand from China. Over 80 per cent of exports so far have headed to the Asian giant.

Traders in India had signed contracts for nearly 10 million bales in total for export at $1.01-$1.03 per lb, including those already shipped.

Domestic textile makers were worried that such large quantities of exports would cut availability in the domestic market, traders said.

“(It’s a) very regretful decision and this will permanently damage the reputation of the country in the international market,” said Dhiren N Sheth, president of the Cotton Association of India. “Prices are likely to touch support price levels very soon.”

Cotton prices in the domestic market are hovering around 34,000-35,000 rupees per candy of 356 kg each. They hit a record high of 61,700 rupees per candy in March 2011.

The federal government raised the minimum support price for long staple cotton for 2011/12 season by 300 rupees to 3,300 rupees per 100 kg.

International cotton prices rose with the May cotton contract on ICE up 4.33 per cent to $0.92 per lb.

In January, the state-run Cotton Advisory Board cut its estimates for cotton harvesting in the 2011/12 season ending Sept. 30 to 34.5 million bales of 170 kg each from its earlier projection of 35.6 million bales.

The government may revise that down again because arrivals of cotton at local markets are still lower than expected, said Arunbhai Dalal, a Rajkot-based trader.

Cotton arrivals from the new crop in Indian spot markets have dropped 4.4 per cent in the current cotton year until Feb 26, to 22.33 million bales, state-run Cotton Corp of India said on Monday on its website.

http://www.dawn.com/2012/03/05/india-bans-cotton-exports-effective-immediately.html

 

[Invincible INDIAN]

Arre please don't do this. I feel pretty hard to arrange imported chinese nappy pads for my baby

 

[behappy]

Top ten cotton producers—2011
(480-pound bales)
People's Republic of China 33.0 million bales
India 27.0 million bales
United States 18.0 million bales
Pakistan 10.3 million bales
Brazil 9.3 million bales
Uzbekistan 4.6 million bales
Australia 4.2 million bales
Turkey 2.8 million bales
Turkmenistan 1.6 million bales
Greece 1.4 million bales

 

[T90TankGuy]

they had to , the Indian mills were not getting regular supplies, the majority of the stock were being sold to china.

 

[Backbencher]

Arrey wah Pakistan is the 4 th largest cotton producer .
Good going frnds !!

 

[Ammyy]

Top ten cotton producers—2011
(480-pound bales)
People's Republic of China 33.0 million bales
India 27.0 million bales
United States 18.0 million bales
Pakistan 10.3 million bales
Brazil 9.3 million bales
Uzbekistan 4.6 million bales
Australia 4.2 million bales
Turkey 2.8 million bales
Turkmenistan 1.6 million bales
Greece 1.4 million bales

So that mean with respect to geographical area Pakistan is biggest producer of cotton

 

[Guest01]

Good move. Better to ensure value addition within the economy and then exporting value added garmets rather than just exporing primary goods = cotton. Anyone compalining is just the greedy stockist who will be missing the easy buck!

 

[rai_kamal]

Top ten cotton producers—2011
(480-pound bales)
People's Republic of China 33.0 million bales
India 27.0 million bales
United States 18.0 million bales
Pakistan 10.3 million bales
Brazil 9.3 million bales
Uzbekistan 4.6 million bales
Australia 4.2 million bales
Turkey 2.8 million bales
Turkmenistan 1.6 million bales
Greece 1.4 million bales

Now thats a big surprise of the day for me, pakistan is @ 4th position...
gr8 development by farmers of that country...

 

[iajj]

by unfairly punishing cotton producers, indian leadership is creating a war between consumers and suppliers, all because of its incompetence to manage the inflation problem

 

[IndoUS]

by unfairly punishing cotton producers, indian leadership is creating a war between consumers and suppliers, all because of its incompetence to manage the inflation problem

Did you even care to read, the local industries were not getting enough cotton for themselves most of the cotton was being sold to other countries that is why they stopped the export.

 

[seethru]

by unfairly punishing cotton producers, indian leadership is creating a war between consumers and suppliers, all because of its incompetence to manage the inflation problem

look who's talking.

Go get some education in CPC's history. You are no position to comment on other govt's policies. Just get rid of your Regime first, later you can comment on governments.

 

[rai_kamal]

by unfairly punishing cotton producers, indian leadership is creating a war between consumers and suppliers, all because of its incompetence to manage the inflation problem

And do u know why the inflation is increasing ??
If u could curb the price i will be very grateful to u, by the way do apply your ideas on your economy first which is also suffering from inflation..
@topic : Very rarely, i support the upa idea and this is one of them..Our domestic factories should be given priority first instead of china which further exports them back to india...
Namo is also against this ban, which is surprising for me..!!!

 

[bc040400065]

So that mean with respect to geographical area Pakistan is biggest producer of cotton

Why r u soo surprized. As i remember in past we have even crossed 20m figure. So no big deal, if proper help and support is given the farmers can push pakistan to the top of the list.

 

[Shabaz Sharif]

Top ten cotton producers—2011
(480-pound bales)
People's Republic of China 33.0 million bales
India 27.0 million bales
United States 18.0 million bales
Pakistan 10.3 million bales
Brazil 9.3 million bales
Uzbekistan 4.6 million bales
Australia 4.2 million bales
Turkey 2.8 million bales
Turkmenistan 1.6 million bales
Greece 1.4 million bales

Actually Pakistan is closer to 14 million.

http://www.brecorder.com/cotton-a-textiles/185/1158152/

And if not for floods then the production could have reached 17 million.