In my business life, I have not seen a worse situation than this, where such a big disparity is there between spot cotton prices and yarn prices. This disparity for such an extended period of time shows there is a deep rooted problem and it?s not a temporary feature. The current isolated spurt in Indian cotton prices has aggravated the situation to an extent that many can hear the death knell. The more disturbing fact is that no domestic yarn buyer is hassled or is rushing to buy yarn-they know cotton prices have moved 50 per cent and yarn just 20 per cent-still no anxiety! International buyers have diverted their orders as cotton in India has increased much much more in comparison to international cotton prices.
The Central Board of Excise and Customs (CBEC) has issued Notification No. 28/2016-Cus dated March 31, 2016 amending the earlier Notification No.69/2011-Customs, dated the July 29, 2011. As per the current Notification, the Government has provided deeper tariff concessions in respect of specified goods imported under the India-Japan Comprehensive Economic Partnership Agreement (IJCEPA), w.e.f. April 1, 2016 vide.
The DGFT has notified vide Public Notice No. 67/2015-2020 dated March 30, 2016 that ?Textiles Committee? would also be one of the competent agencies to issue Certificate of Origin (COO) under certain Free Trade Agreements (FTAs)/Preferential Trade Agreement(PTAs) along with the other Authorised Agencies.
The Central Board of Excise and Customs (CBEC) has issued Notification No. 28/2016-Cus dated March 31, 2016 amending the earlier Notification No.69/2011-Customs, dated the July 29, 2011. As per the current Notification, the Government has provided deeper tariff concessions in respect of specified goods imported under the India-Japan Comprehensive Economic Partnership Agreement (IJCEPA), w.e.f. April 1, 2016 vide.
The DGFT has notified vide Public Notice No. 67/2015-2020 dated March 30, 2016 that ?Textiles Committee? would also be one of the competent agencies to issue Certificate of Origin (COO) under certain Free Trade Agreements (FTAs)/Preferential Trade Agreement(PTAs) along with the other Authorised Agencies.
The Cotton Textiles Export Promotion Council, known as TEXPROCIL, has been the international face of cotton textiles from India facilitating exports worldwide. The Council connects international buyers with appropriate suppliers and facilitates interaction that enables them to source their specific needs. Siddhartha Rajagopal, Executive Director, Texprocil, provides some wish-list for the industry and the Government in boosting cotton consumption in India.
The sharp rise of over 35 per cent in domestic cotton prices since May 2016 will squeeze ginners and spinners profitability by over 15 per cent, says India Ratings and Research (Ind-Ra). Ind-Ra expects prices to remain elevated around the current levels of Rs 120 per kg to Rs 127 per kg till the end of the cotton crop year of September 2016. The spike in cotton prices will adversely impact the profitability of pure cotton ginners and spinners due to their inability to pass on this steep increase to their customers, at once, due to decreasing cotton demand and increased competitiveness of manmade fibre.