| | |
CHINA-INDIA-COTTON-EXPORT-BAN:China association blasts Indian cotton export ban
BEIJING (Reuters) - China's cotton industry association has criticised India's decision to ban cotton exports, saying it was "irresponsible" and would disrupt the global market.
India, the world's second largest cotton producer, said on Monday it had stopped exports with immediate effect to ensure supplies for domestic mills, fuelling speculation that main consumer China would have to turn to other sources.
The China Cotton Association urged a review of the decision.
"As a member of the international trading family, we hope the Indian government will rectify this market-disrupting and mistaken policy in a timely fashion and comply with global trade rules," the statement said.
It said a previous Indian attempt in 2010 to ban cotton exports had resulted in "heavy losses" for Chinese textile producers and had also hurt local Indian producers.
India has already exported about 9.5 million bales in the current cotton year beginning on October 1, higher than the projected export surplus quota of 8.4 million bales set in January, due to strong demand from China.
India's cotton farmers have expressed misgivings about the ban, which has sent domestic prices further into freefall. Ministers in New Delhi are expected to meet to discuss the issue on Friday.
(Reporting by David Stanway; Editing by Sanjeev Miglani)
ADS BY GOOGLE
video of the day
Domestic stories attractive; prefer KNR over L&T: HDFC Sec