30 January 2015
Eurocoton inform, that the Indian DGFT ‘s (EXIM Dpt.) procedure of registration of contracts for export of cotton yarn has been dispensed with immediate effect.
In fact, this is presently a non issue for our industry counterparts as there is an abundant availability of cotton yarn for domestic use in India (at low prices with the fall in cotton prices): Chinese demand for Indian cotton yarns slowed tremendously over last year.
Though India industry is expecting a boost of consumption of all textile products in the year 2015, they are looking for better prospects for their exports: pick-up in Chinese purchases, improvement in the US economy and revival of demand in the EU (?). Reports indicate that under textile industry lobbying efforts in India in order to help to boost effectively their exports, Indian Authorities might restore interest rate subvention for the entire cotton textile sector and improve other incremental export incentive schemes. Of course, should this turn to be reality, this might impact negatively (prices) competition on the EU market …Besides, this is not acceptable for a partner with whom the EU negotiates a FTA. Clarifications must be requested during DG trade meeting with India.
On the other hand, while it seems that government is doing effort to develop stringent standards for certifying products as “organic” (there were/are claims that India labels its cotton and cotton products as “organic” while they are not), a step in the right direction (buyers notably from the EU are insisting on the certificates issued by the international agency GOTS), reports indicate that local textile industry made pressures to defer sine die such new procedure, and that they would have succeeded. Also on that point, clarifications are needed.