Friday, June 29, 2012

Why Government of India (as an external force) imposing ban on all cotton exports.

Why Government of India (as an external force) imposing ban on all cotton exports. 
The reasons are:
  1. To put pressure on global supplies and prices.
  2. Depletion in domestic consumption and availability.
  3. To curb the country's cotton shipments to China and conserve supplies for local textile mills.
  4. To avoid from negative impact on the industry due to more than 85% exports of India’s total cotton export to china.
  5. Most of the export is only to china, thus causing imbalance in export equality.
  6. Local textile industry would be deprived of good quality cotton and would also face shortages if "the export figure is revised further upwards."
  7. To meet the requirements of local apparel.
  8. Number of bales exported has already surpassed the targeted surplus for the year.
  9. Suggestion to reserve 2.5% bales of cotton for local firms by trade group.
  10. To stem rising costs and reverse the shortage of cotton yarn for domestic firms.
  11. In the 2010-11 seasons, higher-than-expected exports reduced the amount of stock carried over to 2011-12 from 4.8m bales to 3.3m bales.
  12. Cotton production reduced from 34.5m bales to 34.0m bales in 2011/12.
  13. To meet the International cotton pricing standards.

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