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Hefty rise in imports of cotton from China

The import of cotton from China has increased by 26 per cent in the country during the first half of the fiscal year, as compared to the corresponding period of previous year.

The imports of textile yarns and fabrics from China into India have also risen by 46 per cent in first half of the financial year.

According to cotton statistics, poor quality of cotton, high level of contamination and high manufacturing cost have contributed towards this decline in demand for cotton in the domestic market.

The power tariff, wages and interest rate are other factors.

In China power tariff is six cents per unit while in India it is around 11 cents. Further the interest in India are still three per cent higher than the global market rates.

The East India Cotton Association has suggested through the bulletin that the only alternative for the Indian texitle industry, with the World Trade Organisation (WTO) regulations coming in force in 2005, is to go for greater access to global market.

The technology upgradation fund and the new national textile policy as well as the technology mission on cotton are all designed to sharpen the competitive edge of the Indian textile industry and emerge as a strong player in the international textile market, the report added.

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