Indian Cotton Sector Resists China

Texprocil, taking many steps in such developing markets as Asia and Latin America, aims at increasing its export rate in Europe despite the Chinese pressure on the market

  22 May 2013 21:46 Wednesday
Indian Cotton Sector Resists China

Texprocil (India Cotton Textile Export Development Council), a non-profit and autonomous institution, is described as the representative of Indian cotton textile export in international area. Among the activities of the council set up in 1954 are customer-supplier meetings, information about Indian textile and companies, finding out new possible markets, setting up oversea trade delegations and protecting Indian exporters from problems as customs barrier. In terms of Indian domestic market, the council conducts such activities as to develop policies on export with Indian government and to provide rebate of tax after exportation. Among other activities of Texprocil are to create an internal point of view helping the Indian government with bilateral interviews, to help its members understand the policies of the government and to provide information to its members about the trends on import and export. The production portfolio of Texprocil, claiming that the Indian textile ındustry has reliable cotton textile sources in international market, has cotton fabrics and cotton Indian textile productions. The council, pawing the way for these productions to be exported to more than 180 countries all around the world, has an effect on sales figures with its activities. Indian textile and ready-made clothing sector manufacturers supported by the council expects their sales to be 32,8 billion Dollar in 2012-2013 and the export of cotton textiles to be 9,5 billion Dollar.

Indian Cotton Market Will Grow 8,26 %

The director of Texprocil Council-Manikam Ramaswami- giving some explanations to Tekstil Dünyası Magazine about production database, Indian cotton market and global cotton sector, emphasized that India is in an important position in textile market with its reliable materials and qualified productions. Ramaswami said that they provide facilities of innovation and infrastructure development to meet the increasing global expectations.

Ramaswami has also indicated that India has both increased its share in developing markets and enhanced its activities in the markets of developed countries. Ramaswami said; “We saw a slight decrease in cotton fiber production when compared to last year. While the cotton production was approximately 26 billion bale in 2012-2013, it is now possible to say that the production is 32 billion bale. Apart from this, thread, fabric and other refined productions are expected to grow 8,26 %.

‘We are The Third Biggest Supplier of Turkey’

Ramaswami ,indicating that Turkey exported in 2012 11 billion Dollar textile and ready-to-wear productions and the 9,01 billion Dollar of it is made up of textile productions, said that India is the third biggest supplier of Turkey according to the 2012 data with 7,74 share equal to 697 billion dollar. Ramaswani, saying that the Indian share of Turkey’s 1,65 billion Dollar cotton textile production is 89 million Dollar with 5,4 % proportion, “ According to the information we have acquired, while Turkey’s raw cotton import was 1,8 billion Dollar this figure decreased in 2012 to 1,2 million dollar. When compared, Indian import was 32 million dollar in 2011 and this number has decreased in 2012 to 8 million dollar. India has taken important steps in such developing markets as Asia and Latin America. We should make right businesses with Turkey which is like bridge between Europe and Asia. The activities in Turkish market should be speed up for the success in European market”.

India- Turkey Cotton Thread Problem Solved

Ramaswani, talking about the expectations about cotton production and Turkish textile, has drawn attention to the point that the problem of cotton thread import policy between Turkey and India has been solved and he also said that the council represented India in the meetings with WTO ( World Trade Organization). Ramaswani has indicated that the protection tariff on Turkey’s cotton import from India was abrogated from the date of 31 December 2012 and he also said that this situation is a good opportunity for Indian exporters to increase their shares in Turkish markets.

Rates Depend Upon the Cotton Stock in China

Ramaswani, giving some explanations about the future of global cotton markets, drew attention to the fact that the cost of fiber will be the main factor that will decide the cotton growth trend in the next future despite the increase in fiber. Ramaswani, indicating that this situation will be reflecting positively on Turkish manufacturers, emphasized that the price fluctuation in productions depends on China who has the 60 % of cotton stock in the market.

Ramaswani; “To enlarge the cotton production field in India, we are fighting with the factors preventing the production. We are sharing the developments with manufacturers about the technology of irrigation method, fertilizer, micronutrients and precautions preventing the insects and diseases. Despite all these successful policies, like the other cotton manufacturers from all over the world, India also faced with the problem that China decides the cotton rates because of the stocks in their hands. Despite this, with the weak currency of India-rupee-we saw a stability in Indıan cotton rates.

The Most Preferred Fiber in International Area; Cotton

Ramaswami has indicated that India keeps its activities even if those activities are not at the wanted level and reminded that Indian cotton rates go in line with the average rates all over the world. He says that global cotton rates are in a stable situation with the slight increase in demand. Ramaswami; “The Chinese policy of stocking of cotton or the policy of Indian government to calibrate the cotton export may not have a very direct effect on world cotton trade”.

In this context, he put emphasis on the fact that the cotton sector will be an important import-export production also in the future. Ramaswani ended his words saying; “Cotton is the most used, multipurpose, soft, durable, light and warm fiber in the world. On the other hand, because of its durability and maintainability the demand of man-made fiber increases step by step. Moreover, in the production of the natural fiber made from banana, bamboo, etc., important steps are taken day by day. Still, the cotton types have not used their quality of being the most preferred fiber. It owes this not only to the fact that it feels soft but also to its qualities of durability and environment friendliness.


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