China has voiced strong objections to New Delhi's moves to ban exports of cotton, describing the measures as an ‘irresponsible act' that could cause huge losses to Chinese importers and warning that the moves were “in violation of international cotton trade” rules.
The official China Cotton Association (CCA) said in a statement it was strongly protesting the ban, which had triggered heated debate following its March 5 announcement. The move is set to be reviewed by a Group of Ministers (GoM) meeting on Friday after objections were raised by Agriculture Minister Sharad Pawar and at least two chief ministers.
“An action like this has already disturbed the international cotton trade order seriously, and this irresponsible act caused a large number of registered contracts [to] cease to be effective,” the CCA said in a statement issued on behalf of the Chinese cotton and textile industry. It said it had formally protested the move in a letter to the Indian Ministry of Commerce and Industry.
The CCA said China had become the largest cotton importer from India, but it warned that a smooth trade relationship had become increasingly strained following the earlier restrictions on exports that were announced in 2010.
“Since the year 2010, consecutive cotton export restriction policies from the Indian government have not only caused Chinese firms large and undeserved financial losses, but also violated international cotton trade order,” the CCA said, adding that the moves would be a ‘double loss' by also hurting Indian cotton farmers — a concern that has also been voiced by some groups in India.
Keywords: cotton export ban, textile industry, India-China trade
China is affected due to cotton export ban . This is very good news and there is no reason to roll back the same. Let china import finished goods and not raw material. Ghandiji opposed Brits taking cotton from India. Let Manmohan also oppose cotton export through this ban. Let us not act under threat from China .
China has no right to speak about International export law when it
itself flaunts by banning materials required for semiconductor
industry..
Walk before you talk.... is only message to china on many affairs - Economics, Foreign policy and in regards to One China policy...
Bad move in my opinion. Last 20 years of India's growth is because of increased competition which in turn increases efficiency of firms. If Indian textile firms do not have an incentive to improve productivity how can India grow as an exporter of finished goods - as you may realize cloth has a higher value and margin when compared to raw cotton.
Let market guide the way for industries. Too much government intervention may be shortsighted and will not help in the longer term.
@Anjaneyul Malapaka well said, this also fits well to many vedeshi companies operating in India, Whome we supporting by buying their goods, tax to the govt, but the rest are going to foreign hands and more over days are not far away for us to weep while the switches are pressed some where else. Globalization is a fancy term in which rules are mended to suit capitalists in the long term.Look at other countries in Europe especially they support their own industry but here we fancy the west through deception. Simple question Why did the prices rise so much in last couple of years after establishing supermarkets and multi-malls.I am not against multi mall ultimately etc, they pay heavy price to construct and to pay rents that's put on the customer Awake Awake Awake.... we need to be innovative because of the potential human resources. we need to think differently and design things that fit us with optimal resources for eg. Tata Nano and now the mega pixel concept car.
It doesn't make sense for India to support Chinese textile industry by exporting cotton or steel industry by exporting finite resources like iron ore. India did the right thing to ban cotton export and allow domestic textile industry to retool to catch up to the competition. But textile has a responsibility too, they need to improve their efficiency and find out ways to cut costs to stay competitive in this global industry that provides employment to lot of people. There is no reason Indian textile industry cannot compete with Pakistan or Bangladesh who are in similar situation as Indian counterpart. Govt too need to look at the tax structure and infrastructure improvement to enable a level playing field for the industry because banning cotton export cannot be a long term solution. As for Chinese protest, let them do whatever they want. When did China look after India's interest that India has to continue to be their raw material supplier! I say take a hike!
Finally some common sense talk. The knee jerk reactions of this
authoritarian government often make no sense. What did they hope to gain
by an export ban? Our own cotton farmers are losing out. They don't go
out of their way looking for foreign buyers, they just want a buyer who
can give them the best price. Is that a bad thing? Now they have to
accept whatever the domestic spinners want to pay. What a shame. If
domestic buyers cannot compete with their foreign counterparts, they
should get out the spinning business rather than use government to force
the producers to give them undeserved discounts. After all that, we
wonder why our farmers are committing suicide day after day.
When can we get freedom? every where we are slaves, I am responsible
for this situation, my productivity has gone down, I am not
contributing to my economy, just ready to spend what I earn and help
foreign companies to earn money, Every Indian should think and work
in the national interest. While Indian textile firms can't compete
with Chinese in terms of cost, how can we allow exports? Labor cost,
infrastructure and cotton price are the biggest challenge for
textile industry, Labor cost should be compromised, while
infrastructure and cotton price cannot be, one biggest reason for
raise in cotton price is exports and middle men. Government I think
addressed Export while yet to still think about reducing gap between
cotton producer and consumer.
Enough is enough the chinese want to dictate what ever is favourable to them They have all kinds of restrictions on foreigners doing business in their country. If this will help our country by not selling cotton to them let that be. They want friendship with Pakistan, want to build a rail system to Pakistan and Tibet, want us to sell them cotton so they have the money to invest for their back stabbing. No cotton to them and we should not be doing any business with them.
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