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BD,US to protest cotton export ban by India
BD,US to protest cotton export ban by India
Syful Islam
The United States (US) will protest recent 'arbitrary' cotton export ban by India while Bangladesh will voice its concern on the issue in the next month's cotton council meeting in Geneva, officials said Thursday.
"I had talks with the US officials concerned this week in New York who said they will protest the cotton export ban by India in Geneva next month. They sought Bangladesh's support in this connection," Commerce Secretary M Ghulam Hossain told the FE.
"US officials think that the Indian decision was arbitrary. They believe that no situation had arisen that justifies the cotton export ban," Mr Hossain said who met US officials after a United Nations Conference on Trade and Development (UNCTAD) meeting.
"We are not a member of Cotton Council International (CCI). But we are expecting to attend the meet as an observer where we will voice concern."
Mr Hossain said a similar ban in April 2010 raised global cotton prices manifold mounting the sufferings for Bangladesh's textile industry.
He said during the meeting with his counterpart in India later this month he will also raise the issue. "The sudden cotton export ban by India has destabilised the market and put our textile sector in dire straits."
"When an international contract is signed and letters of credit (L/Cs) are opened, everyone is bound to entertain those. India in 2010 didn't entertain those, and this year it had set condition for the contracts signed before the ban was imposed," the commerce secretary said.
With the ban imposed by India on March 5 this year, Bangladesh's contracts and L/Cs for 150,000 pounds of cotton have become stuck. Amid protests by local farmers and traders, India on March 11 said that it will entertain the contracts for which Let Export Order (LEO) has been issued.
Mr Hossain said of the total cotton contracts got stuck; only around 10 per cent got the LEO meaning that India won't entertain the contracts for the rest 90 per cent.
Bangladesh meets nearly 45 per cent of its cotton needs through importing the commodity from India, the second-largest cotton exporter in the world.
Statistics show that the April 2010 ban by India raised global cotton price to 2.40 dollar per pound from 60 US cent. Bangladesh's textile sector experienced a massive blow that time.
Mr Hossain, quoting the stakeholders, said they think India imposed the cotton export ban to grab the Bangladesh's yearn market.
The stakeholders have already urged the government to protest the issue through Word Trade Organisation (WTO) system.
On Wednesday, a meeting at the ministry of commerce decided that apart from steps by the government, the private sector will raise the issue with Indian business bodies to pursue their government.
Besides, the government will find alternative cotton sources so that dependence on India is reduced.
In an instant reaction after the ban was imposed President of Bangladesh Textile Mills Association (BTMA) Jahangir Alamin termed the move as shocking from Bangladesh's textile industry.
"The ban will put a very negative impact on our industry," he told the FE.
President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Selim Osman said that country's apparel industry will face a massive setback due to the cotton export ban.
BD,US to protest cotton export ban by India
Syful Islam
The United States (US) will protest recent 'arbitrary' cotton export ban by India while Bangladesh will voice its concern on the issue in the next month's cotton council meeting in Geneva, officials said Thursday.
"I had talks with the US officials concerned this week in New York who said they will protest the cotton export ban by India in Geneva next month. They sought Bangladesh's support in this connection," Commerce Secretary M Ghulam Hossain told the FE.
"US officials think that the Indian decision was arbitrary. They believe that no situation had arisen that justifies the cotton export ban," Mr Hossain said who met US officials after a United Nations Conference on Trade and Development (UNCTAD) meeting.
"We are not a member of Cotton Council International (CCI). But we are expecting to attend the meet as an observer where we will voice concern."
Mr Hossain said a similar ban in April 2010 raised global cotton prices manifold mounting the sufferings for Bangladesh's textile industry.
He said during the meeting with his counterpart in India later this month he will also raise the issue. "The sudden cotton export ban by India has destabilised the market and put our textile sector in dire straits."
"When an international contract is signed and letters of credit (L/Cs) are opened, everyone is bound to entertain those. India in 2010 didn't entertain those, and this year it had set condition for the contracts signed before the ban was imposed," the commerce secretary said.
With the ban imposed by India on March 5 this year, Bangladesh's contracts and L/Cs for 150,000 pounds of cotton have become stuck. Amid protests by local farmers and traders, India on March 11 said that it will entertain the contracts for which Let Export Order (LEO) has been issued.
Mr Hossain said of the total cotton contracts got stuck; only around 10 per cent got the LEO meaning that India won't entertain the contracts for the rest 90 per cent.
Bangladesh meets nearly 45 per cent of its cotton needs through importing the commodity from India, the second-largest cotton exporter in the world.
Statistics show that the April 2010 ban by India raised global cotton price to 2.40 dollar per pound from 60 US cent. Bangladesh's textile sector experienced a massive blow that time.
Mr Hossain, quoting the stakeholders, said they think India imposed the cotton export ban to grab the Bangladesh's yearn market.
The stakeholders have already urged the government to protest the issue through Word Trade Organisation (WTO) system.
On Wednesday, a meeting at the ministry of commerce decided that apart from steps by the government, the private sector will raise the issue with Indian business bodies to pursue their government.
Besides, the government will find alternative cotton sources so that dependence on India is reduced.
In an instant reaction after the ban was imposed President of Bangladesh Textile Mills Association (BTMA) Jahangir Alamin termed the move as shocking from Bangladesh's textile industry.
"The ban will put a very negative impact on our industry," he told the FE.
President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Selim Osman said that country's apparel industry will face a massive setback due to the cotton export ban.