News / Asia

India's Ban of Cotton Exports Could Hurt Textile Industries in Neighboring Countries

Textile industry analysts in India say the government's ban on cotton exports is hurting textile producers in neighboring Bangladesh and Pakistan, and affecting Indian exporters.

Surprise decision to halt shipments of raw cotton was made to slow the rise in domestic prices, which have surged more than 25 per cent since last October.

The government says it also wants to ensure adequate supplies of cotton for its own garment and textile industry.     

Dhiren Sheth, president of the Cotton Association of India, says the suspension of exports will affect the country's image as a reliable supplier of cotton. India has emerged as the world's second largest cotton exporter.

"The brand value that we had made for Indian cotton is going to get diluted now. It brings in a bit of confusion in the buyers mind and he will tend to discount Indian cotton for that risk premium attached to such uncertainty," said Sheth.

The suspension could also hit the flourishing garment export industries of neighboring Pakistan and Bangladesh.  The concern is that India's action could trigger a global price increase and thus erode its neighbors' competitiveness in the textile market.  

Many of the textile mills in these South Asian countries rely on cotton from India. They are now scrambling to ensure sufficient supplies from other countries.   

Taufiq Hasan, the secretary-general of the Bangladesh Garment Manufacturers Association, says the industry is pinning its hopes on West Africa.

"Next month we have a very big delegation from West Africa. We have made a proposal to them, that if we provide some space for them, whether they are willing to have warehouse in Bangladesh, so that whenever there is a necessity, we can have that [cotton] without any further delay in the delivery schedule," said Hasan.

In Pakistan, exporters have urged their government to ask India to honor contracts that had been negotiated before the imposition of the ban.  Pakistan is a big cotton producer, but still has to import to meet the needs of its textile industry. Exporters are turning to Central Asia, West Africa and the United States to fill the gap.  

The textile and garment industries in South Asia provide crucial foreign exchange earnings and employ millions of workers.

The suspension of exports has also led to uncertainty for Indian farmers, who may be discouraged from growing cotton in the next season. India emerged as a leading cotton producer in the world after it adopted genetically modified strains of the plant.

You May Like

Ebola Death Toll Nears 5,000 as Virus Advances

West Africa bears heaviest burden; Mali toddler’s death raises new fears More

Jordan’s Battle With Islamic State Militants Carries Domestic Risks

Despite Western concerns that IS militants are preparing a Jordanian offensive, analysts call the kingdom's solid intel a strong deterrent More

Asian-Americans Assume Office in Record Numbers

Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video Comanche Chief Quanah Parker’s Century-Old House Falling Apart

One of the most fascinating people in U.S. history was Quanah Parker, the last chief of the American Indian tribe, the Comanche. He was the son of a Comanche warrior and a white woman who had been captured by the Indians. Parker was a fierce warrior until 1875 when he led his people to Fort Sill, Oklahoma, and took on a new, peaceful life. As VOA’s Greg Flakus reports from Cache, Oklahoma, Quanah’s image remains strong among his people, but part of his heritage is in danger of disappearing.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid