India bans cotton exports citing global textile unions
The U.S., EU, Turkish, and Mexican textile associations have jointly urged the Indian government to lift its restrictions on cotton exports (28795, 645.00, 2.29%), which has triggered a global shortage of raw cotton and caused prices to surge dramatically. These industry leaders, representing millions of workers, argue that India's actions violate WTO principles and exacerbate global market instability by disrupting the flow of essential textile materials.
Among the groups involved are the National Council of the Textile Organizations (NCTO), Eurocoton, Canaintex, the Turkish Textile Employers Association (TTEA), and the Istanbul Textile and Apparel Exporter Associations (ITKIB). They sent letters to the European Commission and individual governments at the end of October, stating that India has illegally restricted cotton exports since April, significantly increasing costs for textile manufacturers worldwide.
Since the export restrictions were imposed, cotton prices have nearly doubled, rising from 62 cents per pound to a record high of $1.30 per pound. This sharp increase has put immense pressure on textile producers across the globe. Additionally, poor harvests in other major cotton-producing countries have further intensified demand, making the situation even more critical.
India, the world’s second-largest cotton exporter, has experienced an historically large crop this year, yet it continues to restrict exports for six months, raising concerns about its motives. Hacoit Benoit of Eurocoton warned that the current situation is distorting competition, forcing European textile workers to face tough choices—either pay exorbitant prices, lose competitive edge, or move production abroad, risking job losses.
David Garcia of Canaintex emphasized that India’s actions breach WTO rules and unfairly benefit its domestic industry at the expense of others. He stressed that Mexican companies are now forced to bear the burden of inflated cotton prices due to India’s export controls.
Turkish representatives, including TITA President Halit Narin and ITKIB members Ismail Gulle and Hikmet Tanriverdi, expressed worries that the export ban could undermine Turkey’s textile recovery efforts. They noted that while India claims its restrictions are temporary, they have persisted for over six months, causing ongoing supply chain disruptions.
Cass Johnson of NCTO highlighted that American textile mills are now facing unprecedented challenges in sourcing raw cotton, as global supply tightens and companies rush to secure supplies. Chinese state-owned textile mills, too, are willing to pay any price for cotton, posing a threat to the U.S. textile sector that is just beginning to recover.
In their joint letter, the U.S., EU, and Mexican textile groups warned that if India continues to restrict cotton exports, their industries may not survive. They called on their governments to take a firm stance with India, demanding that it immediately lift the restrictions to restore stability to the global cotton market.
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