China begins to import cotton from India, not Pakistan

[no smoking]

Exactly,

Textile forms a big part of India's exports, but China has become a big player in this field in recent years, India shouldn't help China become even bigger. Its better for India to export finished textiles to Europe and US, rather than exporting raw cotton to China.

How can you export your cotton to US or Europe if they don't have a signficant textile industry? Most of their textile industry has been transfered to developing coutries. And Chna is the their top destinatin.

 

[Blackwater]

This is against the principal of ""All Weather friend treaty of UN charter 420"".

 

[nrj]

You can't move away from exporting cotton to China unless you have better textile manufacturing lobby with European FTA, which implicitly means easier land acquisition, no labor blackmail/protests, Medha patkar BS. Overall a professional industry-friendly environment, which lets face it India could never provide apart from couple of exceptions. China forms 65% of Indian cotton exports. Its good news that new Chinese orders are coming in. Situation was much worse in Nov-Dec, international market prices went lower than Indian price; so exports took halt & exporters suffered losses. Even US exports were hit very bad.

Moreover Pakistan has problems due to power cuts, we have same problems and many manufacturing hubs are affected. Its worrisome when you come to know that domestic players are not able to match the pace of demands because electricity cut makes your plant closed 4-5 days a month. Nevertheless Pakistani exports will bounce back, it is one of the leading cotton producers. And its not China who should be worried about cotton imports from Pakistan going down. Turkey, Bangladesh will have to find someone else to fill the gap created by Pakistan. USA makes sure that China gets enough cotton to keep the textile mills running. US itself is largest exporter of cotton. Even though China is largest producer of cotton, huge domestic demand compels it to import cotton which will then run the textile industry focused for outward consumption.

To cut cotton exports to China and eat its textile market is very very ambitious and should be part of maybe 2-3 5yr plans. But for the time being, I will not be surprised if Indian textile industry players buy/set up mills in China & run shop from there itself because if Indian cotton prices are going to stay above market then your margin becomes thinner and thinner. On the other hand raw material supply in China remains steady. It is a logical thing to do because challenge of coming decades is about moving up in value chain & not about becoming manufacturing sweatshops.

 

[no smoking]

This is against the principal of ""All Weather friend treaty of UN charter 420"".

No, this perfectly serves the principal.
There is something you are overlooking:
1. Chinese businessmen are setting up textile factories in Pakistan, so we don't need to transport their cotton out of their country.
2. By importing cotton from india, chinese is actually pushing indian textile industry's cost up and enrode indian competence. So, we are killing indian industry.

See, now, we not only support our friend in military sector, but also help their in civilian part.

 

[nrj]

2. By importing cotton from india, chinese is actually pushing indian textile industry's cost up and enrode indian competence. So, we are killing indian industry

NO. Exporters now find the international price as losing proposition because its has gone down that the one prevailing India. So they stopped export back in Nov-Dec. Domestic textile mills are thus getting enough raw material. On the other hand, China is hungry of cotton even after being largest producer. Chinese hunger sometimes force them to even consume the shipments which are rejected on the basis of poor quality.

 

[no smoking]

NO. Exporters now find the international price as losing proposition because its has gone down that the one prevailing India. So they stopped export back in Nov-Dec. Domestic textile mills are thus getting enough raw material. On the other hand, China is hungry of cotton even after being largest producer. Chinese hunger sometimes force them to even consume the shipments which are rejected on the basis of poor quality.

So, my friend, what is your conclusion: if indian exporters stopped export, then where the chinese got these indian cottons?
Indian domestic textile mills can always get enough raw material. That is why you can export part of your cotton in the first place. As long as india is exporting its cotton, your domestic textile mills have to pay a higher price since they have to compete with international buyers. That is also why your ban on cotton export was reversed quickly!

 

[SilentKiller]

china has more trade with india than pakistan since the past 2 decades?


Could be many reason for this
*Pakistan might be exporting it to some other countries.
*Pakistan land is not dud like india hence we don't go for cheap cotton
*Pakistan itself import cotton

 

[nrj]

So, my friend, what is your conclusion: if indian exporters stopped export, then where the chinese got these indian cottons?
Indian domestic textile mills can always get enough raw material. That is why you can export part of your cotton in the first place. As long as india is exporting its cotton, your domestic textile mills have to pay a higher price since they have to compete with international buyers.

Export makes no difference. Textile mills focused for outside market have to compete with overseas players anyways.

That is also why your ban on cotton export was reversed quickly!

There were multiple instances when cotton export was banned. Reason behind them are different and isolated.

 

[K Factor]

Is this good, India exporting cotton to China where even cheaper labor makes clothes for export. Wouldnt those jobs be better off in India.

Well, doesn't the same logic apply to America? Wouldn't these jobs be better off in the US if Levi's, Nike, etc did their manufacturing in the US?
Heck, the Unemployment Index was improving recently but went up again last month (though still better than sometimes before).
United States Unemployment Rate

 

[sob]

China begins to import cotton from India, not Pakistan:taunt1::taunt1::taunt1:

KARACHI: China has opted for importing cotton from India instead of Pakistan, as energy crisis in Pakistan has given rise to suspicions that the country's yarn exports may witness a decline.

It is pertinent to mention here that Pakistani industrialists had failed to meet production deadlines against export orders from China and the delivery had to suffer delays.

According to the head of Cotton Giners' Association, Ahsanul Haq 44 percent of the total amount of yarn imported by China last year had been ordered from Pakistan.

But, now Chinese traders have started to place these orders with India instead of Pakistan, pushing Indian yarn exports to an unprecedented level, he added.


China begins to import cotton from India, not Pakistan - geo.tv

This report is highly inaccurate to begin with. He starts off with Cotton exports and then he talks about Yarn exports. These are two different things that we are talking about.

Cotton is the fibre from which you process and get Yarn, and from Yarn you go for weaving into cloth and then to garments. This is the cycle in simplistic manner.

Pakistan produces very coarse grade cotton and most of it's Textile mills are geared for this grade to manufacture curtains and other handloom products including carpets. Finer variety is imported from CIS countries in a big way. Some fine quality cotton is also imported from Gujarat.

India is the second largest producer of Yarn in the world. Pakistan is almost 25% in size compared to the Indian Spinning Industry. In India for decades Government had kept weaving under the Small Sector and had not allowed large groups to enter this field. So we have a result that India exports huge quantities of Yarn to China and then we buy the value added product - cloth from them to convert to Garments.

 

[Blackwater]

No, this perfectly serves the principal.
There is something you are overlooking:
1. Chinese businessmen are setting up textile factories in Pakistan, so we don't need to transport their cotton out of their country.
2. By importing cotton from india, chinese is actually pushing indian textile industry's cost up and enrode indian competence. So, we are killing indian industry.

See, now, we not only support our friend in military sector, but also help their in civilian part.

chini business man setting up textile industry in pakistan

where as 90% paki business man has moved their textile business to Bangladesh due to no electricity,gas and security in paksitan. i Wonder where does chini setting up textile industry in pakistan?? may be in GHQ Rawalpindi compound

so you can judge who is killing whom

 

[trackwhack]

@nrj my point being the finished goods must not find their way back into the Indian market. We need lab our reforms, for that we need a near autocrat. Hence modi, I guess.

 

[no smoking]

Export makes no difference. Textile mills focused for outside market have to compete with overseas players anyways.

Export makes a lot of difference. That is why your domestic textile industry tried to lobby the gov to ban the cotton export: their purchase costs were lift up as the result of exportation.

There were multiple instances when cotton export was banned. Reason behind them are different and isolated.

Maybe you can tell me what is the reason except the complaining from domestic textile!

 

[nrj]

Export makes a lot of difference. That is why your domestic textile industry tried to lobby the gov to ban the cotton export: their purchase costs were lift up as the result of exportation.

Do you even check the facts or just here to troll ?

Indian cotton exports stopped in November not because of domestic demand but because international price went down than the one prevailing in India. Other export ban instances in 2010 and before were result of outgoing volume exceeding the predicted export level.

 

[nrj]

@nrj my point being the finished goods must not find their way back into the Indian market. We need lab our reforms, for that we need a near autocrat. Hence modi, I guess.

Whats wrong with finished goods from overseas in Indian market ? We are supposed to be open economy.

I said it before, we need to start preparing to move up in the value chain. Whats wrong with Indian companies producing textile-based products in China using Indian raw material by employing Chinese workforce and taking advantage of China's industry friendly relaxed norms? Those Indian companies then can sell goods in not just India but every place in World. All the western giants have perfected this formula and are immensely successful in variety of commodities. Which are the successful consumer product companies in world who do not manufacture in China ? I see no future in raising generation which will end up in relatively low-skill manufacturing floor job. How much individual growth opportunity that job provides them ? India needs entrepreneurship culture, which is highly neglected even after knowing that US/Western economic power was fueled by entrepreneurial motivation.

We need labor reforms and its not gonna happen until my kids get married. That is harsh reality. And those reforms can't be implemented by autocrat. That is unbecoming of democracy and everything that we scream out for. Modi is not the answer here. Sure he can be agent of change but reforms can not be forced, the society must accept it by large. We need election manifestos asking votes based on action-item plan which elaborates what labor reforms we are talking about. Once the proposals are deep routed in the minds of Indians and exhaustive discussion happen granting mandate, then the necessary reforms will take place. Industry players have a big role to play in it and Planning Commission can not just jerk out next 5yr dream from Delhi, they need to work along with political class to make them compulsorily carry out campaigns centered around achieving desired national objective in 'Plan' by the 'means' they seek mandate for in elections. Our society is yet to gain that maturity, and by society I mean politicians as well as ever-crying, self-victimizing, lazy Aam Admi. Autocrats are no answer, because they fail in democracy.

 

[Known_Unknown]

..................We need labor reforms and its not gonna happen until my kids get married. That is harsh reality. And those reforms can't be implemented by autocrat. That is unbecoming of democracy and everything that we scream out for. Modi is not the answer here. Sure he can be agent of change but reforms can not be forced, the society must accept it by large. We need election manifestos asking votes based on action-item plan which elaborates what labor reforms we are talking about. Once the proposals are deep routed in the minds of Indians and exhaustive discussion happen granting mandate, then the necessary reforms will take place. Industry players have a big role to play in it and Planning Commission can not just jerk out next 5yr dream from Delhi, they need to work along with political class to make them compulsorily carry out campaigns centered around achieving desired national objective in 'Plan' by the 'means' they seek mandate for in elections. Our society is yet to gain that maturity, and by society I mean politicians as well as ever-crying, self-victimizing, lazy Aam Admi. Autocrats are no answer, because they fail in democracy.

That is too much of an idealistic view of democracy. The fact that that's how democracy has been running in India for the past 65 years is what has caused all of India's problem today. You have everyone from goat-herders to rapists in Parliament making laws ranging from Intellectual and Copyright issues to Fiscal responsibility bills.

A far, far superior system is the one in China.

 

[trackwhack]

@nrj

We are an economy modeled on consuming what we produce. I cannot see why I have to hire a chef when my wife cooks better. If by exporting cotton we are getting rid of excess produce, great. I do not want India being the shop floor of the world like China is, but we have no business importing clothes when we are trying to rein in a 20 billion deficit a month.
Secondly, We do not have the educational base or infrastructure to move up value chain for at least 2 generations. And that's enough time to be made into an economic slave. Remember east India company.

 

[nrj]

@trackwhack

The economic model you are talking about was adopted by Nehruvians and it has failed miserably. Secondly, it is bias if you do not want Chinese (or any overseas products because they are manufacturing base) and still talk about open economy. Are you talking about national deficit? Govt is not buying finished textiles from China or is it ? It will be counter-productive if you keep the Indian market closed out of fear of competition. That is what we did in later part of last century and thus suffering its adversaries till now.

 

[no smoking]

Do you even check the facts or just here to troll ?

Indian cotton exports stopped in November not because of domestic demand but because international price went down than the one prevailing in India. Other export ban instances in 2010 and before were result of outgoing volume exceeding the predicted export level.

Who is talking about the stop of last Nov?

The cotton export ban was in Mar 2012!

Cotton prices jump as India bans exports - FT.com

Quote:
"Analysts said the move was aimed at ensuring sufficient supply of cotton for domestic textile companies, which have been under pressure as prices have risen. "

 

[nrj]

Who is talking about the stop of last Nov?

The cotton export ban was in Mar 2012!

Cotton prices jump as India bans exports - FT.com

Quote:
"Analysts said the move was aimed at ensuring sufficient supply of cotton for domestic textile companies, which have been under pressure as prices have risen. "

Check the export estimates of the fiscal plan that year.