Ban on Indian Cotton Exports Demanded

Thursday 15th of January 2009 04:42:43 PM

Ban on Indian Cotton Exports Demanded

The textile and clothing industry of India has urged the Indian government to place a ban on the export of Indian grown cotton. The textile industry, according to the Indian industry news site Merine, is on the brink of collapse because the exportation of cotton has not been controlled. Indian cotton is used in a number of countries for garment production ranging from plain t-shirts to haute couture fashions.

Among the demands of the textile and clothing industry is an immediate ban on the import duty attached to cotton. Cotton prices in India are said to have increased over 30 percent and that raw cotton has virtually disappeared from the Indian market due to the unfair practices of international textile traders.

P.D.Patodia, the chairman of the Indian Textile Industry, stated that, “The textile and clothing industry is going through a serious crisis because of the spiraling increase in cotton prices.” This increase, Patodia went on to say, is caused by the uncontrolled cotton exporting practices of the Indian government. He feels that international traders are hoarding cotton and are able to manipulate the supply and price of cotton.

Indian textile mills are not able to afford the high prices of cotton and are being forced to cut back on textile production. This cutback is projected to have a serious impact on Indian employment and the Indian economy.

To offset the problem the textile industry is calling for the fourteen percent custom duty on cotton to be immediately done away with. This would allow the textile industry to source cotton from the cheapest suppliers.

The response of the government to date has not been positive. They are, however, looking for ways to assess the needs of the cotton industry before a major financial and economic crisis erupts, according to government officials. No details of their plan have been presented to textile industry officials.

Textile officials hope to work with the Indian government to find a solution to cotton problem before March of 2009.

(c ) Image by Melodi T, www.sxc.hu/