Last month, industry stakeholders came together with a video conference against the blueprint to apply quotas on cotton imports and for the highlight problems cotton manufacturers experiencing. The main discussion point of the meeting was that cotton manufacturers had a challenging year behind and that cotton imports continued at full speed despite the growing stock has remained.
The report presented to the President Recep Tayyip Erdogan for the resolution of the current problems in the cotton imports composed of 7 main condition , was assessed under the moderator role of the Hakan Guldager from Dünya News and with the participation of the chamber of the industry chairman and representatives, presidents and representatives of some exporters' unions, the chairman of the National Cotton Council and with the TOBB Turkey Textile Industry Council President during the comprehensive meeting. At the meeting, which was in a Webinar format, it was streamlined that the cotton should be recognized as strategic commodity and the formation of roadmap that should be track of precisely to the enhanced production, increased efficiency and proposed quality At the meeting, where the current developments in the cotton sector were discussed, the industrialists stated that the demand for "stopping or restricting imports" available in the report submitted by the manufacturers to the President and the Ministry of Agriculture was a false demand in all respects. Textile industrialists, as they are not capable of resolving restrictions on imports and their negative effect on cotton,
"Financial Grant as Bonus Should be Disclosed A Season Ago’’
Emphasizing that cotton is a strategic product, President of the Assembly of TOBB Turkey Textile Adil Sani Konukoğlu said it would not be appropriate to restrict imports of cotton, "The total demand for the industrialists is around 1.6 million tons. It is believed that the production is around 700-750 thousand. It is a fact that manufacture does not satisfy consumption. The main issue in cotton is the early announcement of state subsidy. Financial grant as bonus should be disclosed this season before October.’’
Konukoğlu said, “We also support issues such as licensed warehousing. But we are absolutely against approaches such as restricting imports. Not true. We would in this way raise barriers to the exports of textiles around 25 billion dollars. In addition, the reduced price of cotton does not give us any advantage. When cotton is cheap, it has direct effect on our prices. It is not the spinner that is responsible for the transferring 60-70 thousand tons cotton that was written in the reports submitted to the President. Within the pandemic, yarn stock was left at the manufacturer.’’
"Cotton is the Main Raw Material of the Industry"
Istanbul Textile and Raw Materials Exporters Association (ITHIB) President Ahmet Öksüz said, “It is a false assumption to see cotton just as an agricultural product. Cotton is also the raw material of the industry. Therefore, it is important for us to manufacture more of it. We as industrialists, primarily use domestic cotton. The equivalent of 550 thousand tons of cotton, which is the production amount computed this year, is 1 billion dollars. That means Turkey has cotton reserves at around $ 1 billion. However, Turkey has a total of 65 billion dollar turnover from textiles with only $ 25 billion from ready-made garments. In this context, the demand saying "import must be stopped" is too risky. In the report submitted to the President of the cotton producers, there are many good and correct demands, but you write such an article that it overrides them all. There are points that we support among those seven demands. But 60-70 thousand tons of cotton has remained. Why did we wait so long? Cotton is like gold. It has a market and stock exchange. It has international value. If we have cotton stock not marketed, it means its price does not bring any buyer either for a trader or for a manufacturer. There would be core belief to expect a rise in cotton prices that is understandable. Cotton is separated from other agricultural products with this advantage, you can keep it. It was a preference to keep it. It was also not a big figure to have 60-70 thousand tons for our consumption. We should not disclose to restrict, stop, limit or curb its exports talking about all of them and anywhere anytime.’’
"We Should Exceed 1 Million Ton in Cotton Production"
Istanbul Ready-to-Wear and Apparel Exporters' Association (İHKİB) President Mustafa Gültepe said, “As the chairman of the industry that exports up to $ 18 billion, our outlook is clear. Everyone wish to bring grants to cotton, expand its cultivation and increase its yield in the land. We do not have objection to all conditions associated with agricultural policy. Obviously there is no other option. Cotton industrial product ... If there is a demand such as stopping imports, we all can say that it is wrong when we look at the supply-demand side. In addition, such a restriction or prohibition puts us in a bad position in the eyes of international brands. I think the cotton producers wanted to raise the issue from a different angle to get the support they needed. Otherwise, we can reach the points we need much more easily if we can make our voice heard collectively to fuel the interests of all of us by coming together with cotton producers, textile producers and retail garment manufacturers. When you say something like ban the import of cotton, you have to think. How and with what will we export $ 18 billion in ready-to-wear clothing? Our biggest problem is; when you reach ministries without getting together as a union, chamber or stock market, without examining, this only creates a loss of power. We should speak in advance about ‘How we can raise the cotton production in Turkey over 1 million ton on?’’ Since we also need good cotton for value-added, quality production.’’
"If we get cotton cotton 100 liras cheaper, the yarn would lose 200 liras worth of value"
Fatih Doğan, Chairman of the Board of Mediterranean Textile and Raw Materials Exporters Associations, said: “In the period when we were a net cotton exporter, there was a struggle against the feeling of the spinner and not going abroad for the raw material produced with the support of the state ... Now the picture has turned upside down. The main issue today is the spinner rather than the farmer, the merchant, the ginner. The spinner is the engine of this business. If this locomotive does not pull these wagons, it will leave. The farmer cannot return, and the cotton fields in Cukurova that have been turned into citrus do not have a chance to turn back to cotton. In order to protect the cotton arable lands of the next farmer, we need to ensure that the farmer is able to produce and profit with all our strength. The price of the billet increased to 6.35 lira. TARIS contributed and said that I am a buyer at the import price. There is no current obstacle that the farmer's giner's cotton cannot be sold. Our spinner never wants to buy cotton cheap. If we get cotton cotton 100 liras cheaper, the yarn would lose 200 liras worth of value.. There is a yarn buyer standing in front of the spinner. Everyone is controlling each other. Cotton produced in Turkey with the correct quality, its proper ginning, its right classification and the label of accurate price for the right product. The state unfortunately does leave the accountability to sort and standardize work in its activity. The bales currently produced in most of the gin mills are bare. It has no zone, gin or batch number on it. A bale in a city or so easily became marketable as Izmir cotton in the cotton gin factory in Izmir. Correct quality, right seed, proper ginning are the main instruments in eliminating these efficiencies and increasing this production. Humidity level of American cotton is 5 percent, whereas 9 percent of what we buy from in. Imports are not made just because domestic production is not enough. It is also made for quality cotton. The 3 percent tax on American cotton was also a very wrong decision. The import cost of the direct spinner has increased. What I objected to in the interventions was this; it is necessary to protect the interests of everyone. We need to work together to increase production. "
"Do not ruin textiles while saving cotton"
Ahmet Fikret Kileci, President of the Southeastern Anatolia Textile and Raw Materials Exporters Union, said, “This country must have a total agricultural policy. We are a textile country, we are a textile manufacturer, textile is one of our most important resources ... It is one of the sectors in which we have a say in the world. While the stakeholders of this sector make some decisions within themselves, please look at the big picture. On the one hand, cotton with an average unit value of $ 1.5 should of course increase. On the other hand, the unit value in ready-made clothing has exceeded $ 14, and in textile, yarn, fabric, etc. We are talking about a sector whose unit value has exceeded $ 4. It is not right to mislead such an industry. Those who forward requests and some article to higher authorities in this regard should think twice and send them. The opinions of all stakeholders should be taken when requesting something about textile. The cotton producer should be supported. Everyone agrees. But you cannot ignore the textile industry just because I will move the cotton producer to a point. Today, the price of ‘’30 domestic yarn’’ is 2.75 dollars and imports are 2.20-2.40 dollars. While we say "how can we support the domestic yarn producer?", we do not find it right to try to ban the domestic yarn manufacturers from their raw materials. "
"We do not have the luxury of reducing the raw material of textile"
Uludağ Textile Exporters' Association Pınar Taşdelen Engin said, “Extra taxation or restrictions should not be impulsive, but much more sensitive, balanced and careful. If cotton is not enough inside, we cannot afford to cut the raw materials of textile and garment manufacturers. Of course, whatever is necessary should be done to increase the quality of production inside. Moreover, raw materials that are not produced internally should also be produced. However, these are not things that will happen immediately from today to tomorrow. We need to continue to feed our highly successful textile and apparel industry by acting in a planned and programmed way. We need to adjust our policies accordingly. Otherwise, let's not use the local goods of our producers, let's import them, they do not have ambitions. "I think we will be much more successful with the right policies and planning."
"State support should be variable"
Jak Eskinazi, Head of Aegean Exporters' Unions Coordinator said, “In this beneficial meeting held together by the parties of the subject, there was no approach to support the restriction of imports. Then we need to put an end to this discussion, prepare a joint declaration, and face demands such as stopping or restricting imports. Cotton is a global product in the world. We cannot determine the price of this, nor can the manufacturer. Today, the state should be a buffer. If this product drops to $ 1.30, the government's support of 2 liras is useless. But when the price rises to $ 2, it means that support is no longer needed. It is necessary to switch to a flexible support model that can play between, not with a certain and fixed money. This should be organized by the Ministry of Agriculture. This is how it is handled in the world, especially in America. State support increases as the price decreases, state support decreases as the price rises. Only in this way we protect and support the manufacturer. The scale of this is that we can work together and present the ministry. It will be beneficial for everyone. ”
"Not Enough Cotton"
Adana Chamber of Industry Chairman Zeki Kivanc, "Cotton is our raw material. We would not export cotton we had sufficient reserves of it. We believe that neither the stockbrokers nor the spinners are against cotton exports. We are inseparable from each. If there is no cotton production, there is no industry in Turkey. Everything in the industry starts with cotton. In an environment cotton entitles for such financial support, it is not wise to say it should be exported. I could also witness that it could balance the cotton prices. If we had sufficient cotton reserves, we would not talk about now. If our demand is 1.6 million ton today, we should export it. There is no any alternate. If state does not want us to work as a sector we will give up. We should announce officially with a press release that no one challenge or has objection against cotton exports as union. We fight as fierce as cotton council to support cotton as textiles. I believe that the more we make our farmers happy, the more cotton will be planted. "
"Nobody wants a ban on import "
Ertuğrul Korkut Tanrıverdi, Board Member of Kahramanmaraş Chamber of Commerce and Industry, said, “There are two points on which we agree. Nobody wants imports to be banned and everyone wants their support for cotton to be increased. We have three months reserves since the pandemic has affected us too. We shut down the factory for a month and a half. We applied for a short work allowance. These are the reasons. Otherwise, if we buy cotton in a cheap price, it will have an adverse impact on our prices. I do not want to buy cotton for 1 dollar. Because we still do not earn if this happens. The National Cotton Council needs to be more inclusive. He should also ask, 'What does the spinner want? He has to look at why the spinner is buying American cotton, Brazilian cotton. I need to buy the cotton that I will use in January today. I would like to use local cotton, but we cannot make the yarn we make from every cotton. It is necessary to look through the eyes of the spinner.’’
"Producer Does Not Want to Grow Cotton"
National Cotton Council President Bertan Balçık said, “Problems related to cotton should be addressed by focusing on the production in our country. The report presented to the President is a 3-year accumulation. Since 2018, manufacturers have been seriously affected by the China-US trade war, foreign currency attack, costs. It should not be evaluated by looking at the prices in cotton today. The producer does not want to grow cotton, feels abandoned and unsupported. There are obvious mistakes to bureaucrats from the industry. Import manufacturer's phobia. One thing is very prominent manufacturer in Turkey and sees it as a solution in the shortest way, unfortunately. Because he can't find the support he wants to find. We also spoke at the workshop of the Istanbul Chamber of Industry. Now the industrialist needs to be active in the production of raw materials. Manufacturers and ginners have shortcomings. It is correct. But let's face it, the industry was left unattended. We have structural problems, not just about premium support. Let's focus on these areas together. ”
"You Kill the Manufacturer To Buy Cheap Cotton"
Reminding the Istanbul Chamber of Industry's Cotton Workshop from Field to Brand with the participation of all parties, İzmir Commodity Exchange President Barış Kocagöz said: “The final report of that workshop includes what should be done in cotton and how to act. From the field to the shirt, we looked at cotton in the big frame. We kept country interests ahead. Cotton producers are going through a very difficult year this year. There has been 30-35 percent cultivated area shrinkage since last year. We estimate 550-600 thousand tons of yields this year. We had set a target of 1 million tons with the studies carried out in the last 10 years. We started to reach 950 thousand tons. But 400 thousand tons of cotton was imported without calculation. With the wrong steps taken in the last two years, the success we have achieved in the last 7 years has been destroyed. Different mistakes of the sector have also been effective in this. Failure to pay premiums in April is one of the biggest problems. The farmer enters new cultivation in April, he needs money. In addition, support policies should be made for at least 5 years. The producer needs to know what to get from the cotton for 5 years. The state has to say this: I set a target of one million tons, and I will support this much until it reaches this. When it reaches the target, if it is too much, then it will start to reduce the support. The producer neither got the money in April nor knows the support of the cotton it will produce. He still does not know he is waiting for harvest. These problems were finally conveyed to the President. Advocating an import ban can only be the job of those who do not know mathematics. It doesn't make sense. This product has zero customs to make the textile industry competitive. But the producer must also stay alive. If the producer does not survive, the industrialist of this country will lose in the first place. Customs taxes on corn, wheat and sunflower protect the producer. It is said that the most support is given to cotton, but multiply the support amount by the customs amount. See what the cotton producer competes with. When it comes to this year, I will criticize the yarn industrialist.
At the end of July and the beginning of August, 60-70 thousand tons of cotton remained in storage. This is not even a monthly consumption of Turkey. But folks can't sell cotton. Everyone is drawn from the buyer, the spinner doesn't need it. Prices were 10.20. You're looking at Brazilian cotton, 11.70. You kill the producer by buying cheap cotton. Not only the ministry but also the yarn and textile industrialists should have a cotton policy. He should not work to get it cheap; he should also consider the manufacturer. "
"Import ban is against arithmetic"
Stating that Çukurova has a 150-year history of cotton, Adana Commodity Exchange Chairman Şahin Bilgiç said, “Today, cotton cultivation areas in Adana have decreased from 3 million decares to 300 thousand decares. The cotton producer was rich in cotton in his time. However, cotton production has now become both laborious and costly. The manufacturer turned to alternative products. It is not possible to say 'I did not plant this year; I will plant it next year'. We are not against imports. The import ban is against the arithmetic. Cotton imports should be free. The industrialist has to meet his needs. But if we want to get the cotton produced in Turkey, we say strategic products need to act accordingly. Cotton cultivated lands started to turn into citrus. Citrus cultivated areas in Adana have risen to the third place 3-4 years ago when they were never there. When the producer cannot make money, he runs away from cotton. If he wins money, he will return. "We are losing some values from the lack of planning in agriculture."
