【印度Hindu0312]Cotton exports to China under scanner

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Cotton exports to China under scanner Sujay Mehdudiahttp://www.thehindu.com/business/Industry/article2987246.ece




The HinduA farmer grades cotton at Baswapuram in Khammam District. The government has decided to lift the ban on cotton exports, that was imposed last week. File photo

Even as the Director-General of Foreign Trade issued a fresh notification lifting the ban on cotton exports, the government is set to launch a probe into the “self consignments,” mostly to China, and scrutinise the export receipt certificates (ERCs) to get to the root of the sudden spurt that caught it unawares.

Though the government had registered 130 lakh bales for exports, it was only last week that the alarm bells started ringing. This sudden spurt had the government worried, as nearly 85 per cent of the exports went to China. “We are going to have a close look at the self consignments which have been shipped by individuals or companies in the recent past to verify the authenticity of exports. In addition to this, the ERCs already issued are also likely to face reconciliation,” a senior official of the Commerce Ministry said.

Following strong protests by Agriculture Minister Sharad Pawar and the Congress units of Maharashtra and Gujarat, the government announced the revocation of the ban.

The government feels that high price volatility and the sudden surge in exports had forced it to impose the ban. Around 84 lakh bales were termed exportable surplus; however, against it, 95 lakh bales have already been exported. While exports are booming, there is a slowdown in the domestic industry. The stock-in-use position stood at 29 lakh bales against the requirement of 62 lakh bales. “China itself is a big grower of cotton. However, it is a net importer, and does not export even a single bale. We need to look into the consignments wherein there is suspicion that traders have siphoned the cotton off to some front company in China and hoard it for a month or two before selling it once again to make a killing,” another official said.

Officials argued that as the rupee depreciated, Indian cotton turned out to be one of the cheapest. Out of the 340 lakh bales of crop size, 260 lakh bales are already understood to have been consumed. The government is expecting around 40 lakh bales in March and another 30 lakh bales in April. “Nearly 75 per cent of the cotton crop has already been sold. Whatever left is coarse cotton, or brown in colour, which does not command good price. The Cotton Corporation of India has a corpus of Rs. 4,000 crore for the market interventions scheme in case of any eventuality. There was no need for a ban in the first place at all. It was an ill-thought out move,” without any consultations with the stakeholders, an official said.

Commerce Secretary Rahul Khullar told journalists here the ban stood lifted as of Monday morning. “There are huge bunches of registrations; those would be scrutinised and revalidated. But no new export registrations would be done until the existing entitlements are revalidated,” he said.

Of the total of 13 million bales registered before the ban was announced, 3.5 million bales are yet to be shipped, and these will be scrutinised.

Mr. Khullar pointed out that there was a mad rush to export cotton, evident as it was from the fact that the ERCs for export of 72 lakh bales were issued in January and February. “Scrutiny and revalidation is to make sure that there is no fictitious transaction.”

评论：
why the Textile Ministry is acting like a jumping frog once the decision made they should prepare to face any situation in deploying the ban on exporting the cotton if it really works in the INTRESTS OF THE COMMON MAN BUT NOT INTRESTS RESTS WITH SOME OTHERS
from:  deepthi
Posted on: Mar 12, 2012 at 13:42 IST   What is going on? One day ban and second day withdrawal.How silly it is.People who take such wrong decisions should be sacked to avoid future recurrances of such situations.
from:  dsnmurty
Posted on: Mar 12, 2012 at 21:02 IST  
Forgive my aging memory, but didn't we once have a Gujarati gentleman lead the nation to boycott and protest the export of cotton and import of clothing from Manchester? Six of every seven bales exported are going to a country that is increasingly putting a strangle-hold on the nation's economy. To boot, there was another article a few days ago on how the Tiruppur mills are faring poorly in the garment industry in a globalized world.

This has much to do with the entire manufacturing space for India. Nehruvian planning over six decades has put the entire sector at a competitive disadvantage. Every other developing economy is making course corrections, while we have no way of employing an exploding population in the increasingly important sector of manufacturing. Coupled with a nonchalance for quality in goods it manufactures, India will soon neither be able to produce what its own populace will increasingly desire nor position itself to cater to nations that demand quality.
from:  Kumar
Posted on: Mar 13, 2012 at 05:33 IST  
DGFT and the government needs to set its house in order quickly and start working seriously to plan proper use and export of cotton to benefit all. It is pity that our cotton as raw material is under utilised providing ample chance to China to increase their market for finished cotton readymades. Our political leaders and officials once again proved that are incompetant and belated in decision making.
From the market survey, I analysed that Chinese businessnmen are taking the best of items from India as samples and exporting to India the same, similar or even better looking products at lower price, eventually killing our market goods in long run. I hope someone is listening and making note of it.
from:  baiju kodungallur
Posted on: Mar 13, 2012 at 07:32 IST  

When will our government ever open the eyes?! Can't they at least learn from it's Chinese counter part and allow only value added products for exports? Invest in India and generate employment, ensure quality & cost competitiveness and export value added products. That must be the Mantra...! Our PM (not withstanding his PhD, character and credentials) acts like an ostrich with head in sand some times. Sir, can you pl close down Cotton Corpn of India and start Vaule Addition Authority of India and give it the muscle to set norms for value addition for export.... for anything under the sun!
from:  Uday Kumar
Posted on: Mar 13, 2012 at 08:14 IST  



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