April 22nd, Bangladesh (Tazakhobor.com): Bangladesh's main export industry textiles may suffer badly due to India's restrictions on cotton exports this week. Cotton import through Benapole land port remained suspended from Wednesday morning in the wake of India's restrictions on the export of the raw fiber.

Bangladesh buys 30 percent of its annual need of 40 lakh bale of cotton from India, the world's second-largest cotton grower, transported by land, but supplies have stopped after the export ban was imposed. Only  29,128 bales of cotton were imported through Benapole port in the last six days. And it shut down totally on Wednesday.

Other than India Bangladesh imported from Uzbekistan, Russia, and USA.

Abdul Hai Sarker, president of the Bangladesh Textile Mills Association also managing director of Purbani Group said, “The decision will increase our production cost and also make it difficult for us to reach (send) our products in time to the importers.”

Kutubuddin Ahmed, a leading exporter of textile products mentioned his  opinion to press that, the export ban will hurt our spinning mills and export oriented knitting manufacturing firms. Textiles, mainly ready made garments, are Bangladesh's main export, generating $15.56 billion or 80 percent of the country's annual export income in the fiscal year to June 2009.

Masud Rana, director of Uskat Ltd in Dhaka, said there would be a big impact on the local spinning mills due to the restrictions, our Benapole correspondent reports.

Importers will have to spend more money in importing cotton from other countries, he said. There will be consequences on the country's garment industry, he added.

India's Office of Textile Commissioner said it stopped registering contracts for cotton exports as of Monday. The order on export suspension was effective from April 19 and will continue until further notice.

Meanwhile, Cotton prices advanced in New York, adding to a 70 per cent rally in the past year, on concern the halt on shipments by the Asian nation may worsen tight global supplies. World inventories will drop 19 per cent in the year through July as demand rises 5.7 per cent, the US Department of Agriculture said on April 9.

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Source: Bdbangla-News
Key words: import export compliance,international import ,import export,cotton commodity,cotton import, cotton export, India Ban cotton export, export business,textile exporters


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