INDIA: Government raises raw cotton exports by 1m bales
The Indian government is to allow the country to export an additional 1m bales of raw cotton during the current season which ends on 30 September, in a move that raises the export cap from 5.5m bales to 6.5m bales.
The move comes amid falling prices and reports that more cotton will be planted in the in the coming, but the government says it will continue to review the situation.
The contracts for export the cotton still need to be registered with the Directorate General of Foreign Trade prior to shipment, the department said in a statement.
India, the world's second-biggest producer and exporter of cotton, introduced a ban on raw cotton exports back in April last year, in an attempt to halt soaring price hikes and exports.
Shipments resumed on 1 November, but the cap of 5.5m bales was imposed - leading to a rush of applications for the quota.
Spinners claim the latest move will lead to a shortage of cotton for the domestic industry, which could again push up prices.
Only last week they cut production by around one-third in a bid to reduce stocks of cotton yarn at mills, which have been suffering losses thanks to rising raw materials costs and unsold stocks.
An interactive databank with intelligence on the major apparel sourcing countries
- Euro decline weighs on Turkish clothing industry
- Supply chain mapping using the Bitcoin blockchain
- Mexico makers see rise in exports and local demand
- VF Corp confirms interest in Africa sourcing
- G-Star RAW pushes the boundaries of denim
- UK retailers to answer over human trafficking
- LF Corp to streamline planning and sourcing
- New dye-sublimation printers for sportswear
- Clothing a top category for mass personalisation
- Exports of lower cotton content denim treble
- Ethiopia – the emerging textile and clothing industry
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Management briefing: Factory safety and auditing: The key challenges
- Global market review of workwear - forecasts to 2019
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects