According to foreign news, Indian cotton prices have risen sharply by 11% in the past two months, pushing up the raw material costs of textile companies and weakening the competitiveness of cotton yarn exports. At the same time, international cotton prices rose by 17%, but the Indian rupee appreciated by 2.7%, offsetting the impact of rising global cotton prices.
According to statistics, in US dollars, India’s exports of cotton yarn and cotton cloth increased by 0.38% year-on-year to US$938 million in December 2017, higher than US$935 million in the same period last year; exports of man-made yarns and textiles increased by 6.77% year-on-year. % to US$417 million, up from US$390 million in the same period last year.
It is understood that driven by other commodities, cotton prices in India continue to rise. From November 2017 to now, the price of cotton in India has risen from the previous 10,517 rupees/quintal to 42,000 rupees/kander, an increase of 11%. Due to the implementation of the GST unified tax system, several important export incentives are difficult to implement, resulting in continued weak domestic demand in India, increasing competitive pressure on exports of cotton and cotton fabrics, and weakening the competitive advantage between India and other exporting countries, such as Bangladesh. Therefore, exports Growth becomes more difficult.
According to statistics, India’s capacity utilization rate began to decline in late December, with cotton apparel exports reaching US$1.33663 billion, compared with US$1.45417 billion in the same period in 2016. Recently, the Indian Apparel Export Promotion Council (AEPC) has also been negotiating with the government to restore tariff rebates and other incentives to stimulate exports. India’s textile and clothing exports are in trouble and the government is taking active measures
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