Foreign news on August 1, India’s Noida Apparel Export Cluster (NAEC) seeks a comprehensive ban on Indian cotton and yarn exports to increase the supply of raw materials to the domestic garment industry, making ready-made garments It can be exported to the international market and earn more income.
NAEC also stated that if the export of cotton yarn is banned, the supply of raw materials for the garment industry, which has been stagnant for 6 months due to the new crown epidemic, will be more sufficient, allowing it to compete in the global export market. compete on.
NAEC Chairman LasdfssdfslitThukrasdfssdfsl and Uttar Pradesh Export Promotion Council (UttasdfssdfsrPrasdfssdfsdeshExportPromotionCouncil) said that the large-scale export of cotton and yarn, which has suffered huge losses due to the new crown epidemic, has made it worse.
It is worth noting that the Noida industrial cluster’s garment export share in the last financial year was US$3.5 billion.
According to data from the Indian Ministry of Textiles, India exported nearly 12 million bales of cotton and yarn in the past two fiscal years.
Data show that India exported about 5.5 million bales of cotton and yarn to Bangladesh, Vietnam, and China in the last fiscal year. Among them, 2.197 million bales (about 275 million kilograms) were exported to China alone.
Thukrasdfssdfsl said that although the export of cotton and yarn generates approximately US$75 billion in fiscal revenue every year, if exports are banned and more raw materials are provided to the garment industry, garment exports will It will generate approximately US$40 billion in revenue annually.
He continued to say that exports consume the raw material supply of the domestic garment industry and currently only meet half of the 12 million bags of garment industry’s annual demand.
“The government has set a US$400 billion commodity export target for us, that is, the export of various types of ready-made garments. For this reason, we can only ask for a ban on the export of cotton and yarn.” he said.
Thukrasdfssdfsl pointed out that the textile and clothing industry accounts for 7% of India’s total industrial output value and 2% of GDP. The industry also provides employment opportunities for approximately 105 million people (45 million direct jobs and 60 million indirect jobs).
He said: “By the way, 72 million of these workers are women, mostly from rural areas. The garment industry also plays a key role in foreign exchange earnings, It brought in US$11.18 billion in foreign exchange earnings in the 2020/21 financial year.”
Thukrasdfssdfsl said that to ensure supply, Bangladesh, Vietnam, Thailand and even China Cotton and cotton yarn will be imported from India at agreed prices 6 months in advance. Indian garment exporters sign a 6-month agreement with the importing country. Regardless of any disaster or loss, the price will be implemented in accordance with the agreement.
He said: “This is because we do not have a free trade agreement (FTA) or preferential trade agreement (PTA) with European countries, which protects us from price The impact of fluctuations.”
NeerasdfssdfsjPrasdfssdfskasdfssdfssh, another exporter, said: “The garment industry here relies on cotton, silk, and wool. Nearly 75% of the raw materials for clothing are cotton, which directly Support local cotton farmers. However, the industry is currently facing a serious shortage of cotton yarn, affecting production, employment and exports. In addition, cotton prices have risen sharply in the past six months, ranging from 30-60%, which has also led to an increase in production costs, making It is more difficult for the industry to compete globally.”
A joint secretary-level official in the Ministry of Textiles, who did not want to be named, said: “In the last fiscal year, India had About 50% of cotton and yarn are exported.”
He said: “Our department has set a target of US$400 billion in merchandise exports for the 2021/11 fiscal year. We Exports of cotton and yarn will be banned soon as this will not only affect employment (more raw materials will provide direct/indirect employment to at least 9 million people) but will also hinder the growth of garment manufacturers and exporters.”< /p
