India's ban on cotton exports unnerves Pakistani industry

[karan.1970]

He is happy that India can have some point scoring this year and damage Pakistani textile industry which is famous in the world.



anyway he forgot this flood blackmailing is not going to work forever

There was a thread in the month of july or august where there was an article that highlighted a business opportunity for Indian cotton growers for making money by exporting to Pakistan who would be willing to pay a higher price since the cotton crop has been washed away. In that thread there were sarcastic comments from Pakistani members on India making money from a natural calamity.

Now that GoI is not allowing that to happen, its India bashing again..

Some people just cant think positively...

 

[ISRO Go!]

Good Move ? Ok - what does it achieve and how does GoI benefit from this ?

Do u think India can only export cotton to pakistan,
don't we have anyother country in the whole world dude..
the govt has made this decision by deep thinking ,they have an alternative....

 

[ISRO Go!]

and India wont have the natural calamity

That why we first build dams,not spend on defence materials

 

[deckingraj]

See, We used to export cotton bales before and now
See how idiots we are, relying on Enemy's country to fulfil the demand of the product that is backbone of our export market

I don't say anything bad to India, we Pakistani decision-makers were/are bloody idiots

May be you should start trusting a bit more on your policy maker....Let me highlights some very important points that you might have ignored

- yes it is a fact that 60% of Pak export is textile...Earlier the raw material was provided by Pak cotton industry on its own, excess was exported but now due to floods leave aside export they need to import to keep their textile export in tact....

- However did you notice that since now you will have to import cotton the cost of your end product will go high??? thereby making you less competent then what you would have been otherwise.

- Now don't you think your immediate attention would be to try and keep the cost of import minimal???

- If you agree with above please give us some best possible solutions that you think should have been followed???

- B/W i m asking this question to another indian member about what good it will serve our industry in banning cotton exports just to punich Pak, may be you can help....

 

[deckingraj]

and India wont have the natural calamity

My advice try and spend time in a positive atmosphere...Too much negativity is taking a toll on you(i guess)......please read my post again...All i said is that indirect impact of floods can be seen now...How does it mean that such a story cannot happen in GOI???

In fact our decision to ban exports itself suggest that GOI is also expecting an average cotton crop this fiscal, no????

 

[Von Hölle]

nah, not that simple...Had that been the case there was never a need for exporting raw material by any country, no??? Are you saying that all those countries who used to import cotton from us will now start importing finished good from us????

Think buddy, think a bit more on it...Had been the case of banning export to Pakistan only i would have understood that there is foul play but that is not the case....There has to be a hit on our own production to come up with such strong steps...GOI want's to ensure that our internal demands are met before we send lakhs of tonnes out.....

Consumer market(eg macy's or wall-mart) does not care if the finished product(clothes) is from India or Pakistan as long it qualifies the their minimum quality standard and is the cheapest bidder on the market.

There can be a number of reasons for the above desicion.

A country will first satisfy its domestic industrial demand before exporting outside..as Indian Industry seems to be growing at 13%(not sure of exact figures of textile growth)..

Hence future trend will be... export of raw materials will decrease and finished product will increase.

The above reason combined with less than adequate crop production can bring raw material exports to a grinding halt.

Last but not the least..as there are no sentiments in business..this can be good opportunity to edge out your competitors in global market.

 

[deckingraj]

Do u think India can only export cotton to pakistan,
don't we have anyother country in the whole world dude..
the govt has made this decision by deep thinking ,they have an alternative....

Give me other alternatives where your export can be as profitable as it can in your immediate neighbourhood??? Secondly you cannot destroy Pakistan textile industry in just one year...Next year they will not need your cotton at all....Did you ponder over that???

Also the ban is not to export only to Pak, the ban is on entire export.....So can you please do a better job in explaining your POV when you hit the reply button again???

 

[ISRO Go!]

Give me other alternatives where your export can be as profitable as it can in your immediate neighbourhood??? Secondly you cannot destroy Pakistan textile industry in just one year...Next year they will not need your cotton at all....Did you ponder over that???

Also the ban is not to export only to Pak, the ban is on entire export.....So can you please do a better job in explaining your POV when you hit the reply button again???

i am not a big economist or a govt official..
i only know that cotton makes 60% Pakistan's exports,now,govt has banned cotton export...thats all...
u can ask our govt official if u want....do u want the address...?

 

[Spring Onion]

There was a thread in the month of july or august where there was an article that highlighted a business opportunity for Indian cotton growers for making money by exporting to Pakistan who would be willing to pay a higher price since the cotton crop has been washed away. In that thread there were sarcastic comments from Pakistani members on India making money from a natural calamity.

Now that GoI is not allowing that to happen, its India bashing again..

Some people just cant think positively...

i did not check that thread but i remember that flood read where Indians were terming our legal buying of potato as aid.

as far as this cotton issue is concerned. Pakistani traders already done the booking now if India is canceling it then indeed its just aimed at damaging them.

 

[Spring Onion]

My advice try and spend time in a positive atmosphere...Too much negativity is taking a toll on you(i guess)......please read my post again...All i said is that indirect impact of floods can be seen now...How does it mean that such a story cannot happen in GOI???

read your comment again. Anyway most of my time is spent among Indians on net so you are right

In fact our decision to ban exports itself suggest that GOI is also expecting an average cotton crop this fiscal, no????

GoI should have thought that before committing to the Pakistani traders

 

[deckingraj]

Please keep in mind one thing that i am talking from pure economics perspective...Now with that set in stone let me share my thoughts....

Consumer market(eg macy's or wall-mart) does not care if the finished product(clothes) is from India or Pakistan as long it qualifies the their minimum quality standard and is the cheapest bidder on the market.

True for every single export-import order given the decision maker is not lunatic or corrupt...In short i am in full agreement here...

There can be a number of reasons for the above desicion.

Absolutely, lets see what you have come up with....

A country will first satisfy its domestic industrial demand before exporting outside..as Indian Industry seems to be growing at 13%(not sure of exact figures of textile growth)..

You are right, though if we go by statistics we have done poor if compared to what we did in 2008 in this particular field...

Hence future trend will be... export of raw materials will decrease and finished product will increase.

What? How come??? You know that there is not just macy's that we export our finished goods too, right??? There are many markets out there who are just interested in raw material because for them it is more beneficial to import raw material than finished goods. Our finished goods is not competative in their markets as compared to finished goods prepared by raw material exported by us, so in short either we loose those markets or export whatever they want us to export...We have enough cotton production and our textile industry export is in billions...I don't care if it is raw material or finished goods as long as that industry is in surplus and growing.

The above reason combined with less than adequate crop production can bring raw material exports to a grinding halt.

Exactly, so how come halting exports is any news to feel good about???

Last but not the least..as there are no sentiments in business..this can be good opportunity to edge out your competitors in global market.

Very wrong assumption...Pakistan textile industry is preferred because their products are competitive...Next year their home grown production will be back to business, also there are other sources to import cotton apart from India...So not sure how we can achieve what you are suggesting....

 

[mehboobkz]

Pakistan can buy cotton from Turkey, whats the problem. India has given Pakistan MFN status, while Pakistan has not reciprocated.

Hence Pakistan should not mind.

 

[Hyde]

May be you should start trusting a bit more on your policy maker....Let me highlights some very important points that you might have ignored

- yes it is a fact that 60% of Pak export is textile...Earlier the raw material was provided by Pak cotton industry on its own, excess was exported but now due to floods leave aside export they need to import to keep their textile export in tact....

- However did you notice that since now you will have to import cotton the cost of your end product will go high??? thereby making you less competent then what you would have been otherwise.

- Now don't you think your immediate attention would be to try and keep the cost of import minimal???

- If you agree with above please give us some best possible solutions that you think should have been followed???

- B/W i m asking this question to another indian member about what good it will serve our industry in banning cotton exports just to punich Pak, may be you can help....

Of course Indian or Chinese market would be been cheaper than any other nation... so you are right!

But the matter of the fact is, First they agreed to accept these orders and now cancelling? That will only harm Pakistani industry as they will not be able to complete their orders and damage the reputation in International market thus marking India more friendly nation to trade textile products in coming years as well

Problem is, if they pledged before they must know if they have extra bales to export on stock or they are just making empty pledges (and not to forget the thin relationships we have with India)

 

[silent hill]

That why we first build dams,not spend on defence materials

and what idiot said we dont have dams??? have you actually looked at the percentage of our defence expenditure, its bharat who always start the arms race in the region..

pakistan ne f-16 khareda, hamara bharat f-16 banyega!!!

 

[deckingraj]

read your comment again.

I did and that's why replied back to your comment...However i would like you to highlight the confusing part of my post so that i can learn and avoid same mistake(if at all i am at mistake)

Anyway most of my time is spent among Indians on net so you are right

Then you should not spent time among indian's on net...I hope you have some other better things to do

GoI should have thought that before committing to the Pakistani traders

Jana ji please don't criticize on topics that you are not well aware of...it is not GOI who commit to Pakistani traders....No one can predict such things in the market...I mean how many could predict a cotton exporter to import cotton last year??? Circumstances change and you end up being a defaulter. for example if Pakistan did not get the expected amounts of cotton they will default on their orders, can we say that they should not have commited to those orders until they had cotton in their godowns????

This is something b/w traders and we should leave it to that....Just to let you know our won textile industry growth is dismissal as compared to 2008.... In other words we are grappling with supply shortage at our own end....so such measures are justified and not with any malign intentions....