| Date: |
29-10-2010 |
| Subject: |
Global cotton industry criticizes India over export restrictions |
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India’s decision to restrict cotton exports to 55 lakh bales this season is facing criticism from global cotton industry representatives and is being charged as a violation of World Trade Organization (WTO) rules.
Textile organizations of US, European Union, Mexico and Turkey namely National Council of Textile Organizations (NCTO), European Federation of Cotton and Allied Textiles Industries (Eurocoton), Cámara Nacional de la Industria Textil (CANAINTEX), Istanbul Textile and Apparel Exporter Associations (ITKIB) and Turkish Textile Employers Association (TTEA) have sent a joint letter to their respective governments seeking immediate action to halt cotton trade restrictions by the Indian government, sources said.
India has imposed a restriction on cotton exports to facilitate better domestic supply in the wake of spiraling prices. However, the prices increased with firm pace following the reports of weak output in US. Global textile groups are blaming rise in international cotton prices by nearly 100 per cent (from 62 cent per lb to $1.20 per lb).
It is learnt that the U.S. mills are worried about running out of cotton because India's actions have constricted the worldwide supply and have caused panic buying in the former country.
Source : www.commodityonline.com
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