In the 2010/11 season, the Indian government plans to export cotton based on domestic availability. This move is intended to ensure that local textile mills are not affected by supply shortages, balancing the needs of both cotton farmers and the textile sector. The Ministry of Commerce, Ministry of Agriculture, and Ministry of Textiles have held a joint meeting to discuss the strategy. Following this, the government will release an official forecast of cotton production and domestic consumption for the year. Only surplus cotton—defined as "exportable volume"—will be allowed for export, marking a new approach in how India manages its cotton exports.
Cotton traders are permitted to export freely but must first register with the Textile Commission. Any exports beyond the set quota will face tariffs. Despite these measures, the Indian textile industry remains skeptical about the figures released by the Indian Cotton Advisory Committee (CAB). According to their report, out of the 680,000-ton stockpile, only 136,000 tons are actual cotton reserves, while the rest are raw materials already in use by textile factories. This suggests that current inventories may not be sufficient to meet the demand of textile mills.
As a result, the industry is urging the Ministry of Commerce to announce a temporary ban on cotton exports before December, given that the new crop season won't start until November. Additionally, some textile exporters have called for a restriction on the export of waste cotton, as it is crucial for the traditional handloom industry. However, when the government signaled a potential resumption of waste cotton exports, prices in India surged sharply, creating concerns over rising costs for local textile and garment manufacturers. This development highlights the delicate balance between supporting different sectors within the cotton industry.
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