Bangladesh to Seek ‘quota’ in Cotton Exports from India.

NEW DELHI/DHAKA :  After the domestic garment makers crying foul over the non-availability of cotton, it is now the neighboring, Bangladesh that will seek a separate quota in Indian cotton exports so as to ensure adequate supplies to its local garment industry.

As the media reports in Bangladesh quoted Commerce Minister Faruk Khan as saying, “We’ll demand a separate quota for raw cotton during the bilateral trade talks with India,” the demand will create ripples of debate over the cotton export ban in India.

Khan is on a visit to India with a 23-member business delegation.

In the international markets, cotton prices have touched the historical highs of USD 1.19 per pound this month. Bangladesh and China are the two countries that depend on cotton imports for their textile industries.

As India has capped its cotton exports so as to safeguard the domestic textile industry, the global supplies are found to be in trouble. The crop in Pakistan, which is the fourth largest producer in the world, is also damaged due to heavy floods in the region.

India has so far allowed export of 5.5 million bales (a bale = 170 kg) of cotton by 15th December.

Khan is reported to initiate talks with his Indian counterparts ‘to settle the cotton supply issue with India so that the country remains ‘immune’ to any Indian ban on the commodity’s export,’ media reports noted.

Back home in India, the steep hike in the cotton prices has left the garment makers in jitters. The prices of the key raw material have spiraled to close to double against last year.

Further, the country has very low inventories this year creating panic over the surplus stocks, while floods in Pakistan has raised concerns over the international supplies and the delayed arrival of domestic crop due to heavy rains in the cotton growing regions has added to the woes of the cotton consumer industries.

Source : commodityonline.com