India's Opening Cotton Export Quota Poses A Heavy Blow To The Textile Industry.

The government of India decided to manage cotton exports under the open general license (OGL) system in the cotton year (October -9). The India textile mill said it would be a serious blow to the textile industry. This decision is an immature decision. Textile mill The government has been urging the government to allow exports of cotton from January.

The government announced that the 2011-12 cotton year will begin in October 1st. Cotton export Under the management of the OGL system, S Dinakaran, President of the South India Textile Mills Association (SIMA), said that this will pose a serious blow to the cotton textile industry. The Textile Industry Association urges the government to allow exports of cotton in accordance with the open general license only from January. If it is allowed to export cotton at the beginning of the year, it will impact on the supply of cotton in the domestic market and at the same time drive up prices.

Southern India Spin The factory Association (SIMA) said that the decision to allow exports of cotton in 2010-11 years is an immature decision. It is announced that within the next 45 days, 5 million 500 thousand bales of cotton (170 kg / bag) will be allowed to export, which will stimulate cotton prices to record high.

　　 In just three months, cotton prices hit 63000 rupees / candy (about 356 kg) from 38000 rupees.

The association said that because of fears that the government might expand the number of cotton exports and lead to a shortage of cotton, the textile factories purchased cotton at a price of 60000 rupees / candy. Subsequently, the price plummeted to 30000 rupees / candy, so textile mills lost more than 60 billion rupees in just 4 months. The association is concerned that allowing cotton to export in the open general licence will lead to a repeat of what happened last year in India.