Decision of India to stop cotton export dropped in the market like a bombshell has taken short time. Indian government has withdrawn the decision with increasing cotton prices, effects of China and influence of manufacturers from local market. India took decision to stop export of cotton for 5 months in April, last year. The new prohibition of India, implemented in 5th March 2012, has been criticized by Sharad Pawar, Minister of Agriculture and China. India makes its 80% of cotton export to China.
Authorities has indicated that Turkey which makes its 17 thousand tons of cotton import of its 100 thousand tons from India will not face any negativity while cotton price, fluctuated after decision of India, is estimated to be in normal level again. It is indicated that as following China, Turkey which is the most biggest cotton importer with 700 thousand tons import, breath sigh of relief thanks to this short-lived decision.
In the written statement on the behalf of Anand Sharma, Minister of Commerce, it is indicated that they have decided to remove the prohibition regarding advantageous of ministers, cotton manufacturers, industry and the commerce. When cotton export has been prohibited to support Indian local weaving plants, Indian traders had engagement to export 2.5 million bale cottons.
Nayan Mirani, President of Indian Cotton Organization includes cotton exporters and traders, has indicated that this decision is a good improvements for exporters and manufactures and added; “it should not be forgotten that India is over cotton manufacturer”. Mirani who has emphasized over-harvested product should be exported has said that these are narrow-perspective decision, sometimes requested by textile sector to prohibit cotton export. It is indicated that in January, India sold 9.4 million of bale cotton by exceeding export quota determined as 8.4 million bales while India where single bale cotton is calculated as 170 kg.
India that makes 25% of global cotton manufacturing and 18% of total global cotton export is the biggest cotton manufacturer after China. Indian textile manufacturers worry about shortage and increasing cotton prices. Decreasing in demand for cotton because of slow-down in economic growth cause to 57% go in decrease last year despite of the fact that farmers manufactured record level cotton.
Cotton Harvest Went in Decrease
By making an explanation, Indian Cotton Association has noticed that Indian cotton harvest in October-March became 23.73 million bales by decreasing 6.4% comparing previous year. This number was 25.35 million bales in 2010. Farmers from Maharashtra and Gujarat where Indian largest cotton manufacturers located has explained that they expect a price support from government related with 50% decreasing in cotton price.
Growing Population in India Increases Textile
Having high rates of birth in India and increasing necessities of kid population enlivened also textile sector. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has published an analysis about how the sector will be formed in future and what are the reaction of consumers in the sectors of kid-wear. According to this study, kid-wear industry which is currently 38,000 Rupi Crorer will be 80.000 Rupi Crorer with about %20 increasing in 2015 as a result of effects such as media influence, changes in choices and brand awareness.
