India: Government'S Prefabricated Cotton Price Stabilization Policy Fund

As the most important economic crop in India, cotton is not only the country. Spin , clothing The important factors that influence the development of the industry also play a great role in the economic development of the country. Recently, it is reported that the India government will formulate a cotton price stabilization policy fund and adopt a corresponding tax policy for export cotton. India is an important exporter of international cotton. The levying of export cotton will not only affect the development of related industries in the country, but also will have a great impact on the adjustment of international cotton prices.

According to the Minister of textile industry of India, the government of India is planning to establish a cotton price stabilization policy fund to levy taxes on cotton exports. It is understood that this proposal will be submitted to the Ministry of Commerce of India and the cabinet economic and Foreign Affairs Committee of India. Once approved, cotton exporters will be forced to finance the fund.

It is said that the India Cotton Corp guides domestic and export sales of cotton, and the distribution of sales proceeds will be determined by a ministerial committee composed of representatives from the Ministry of agriculture, the Ministry of Commerce, the Ministry of textiles and the Inland Revenue Department, to decide on an appropriate balance between the interests of domestic users and producers. According to the price support system of the 2012-13 cotton season, the government of India lowered the minimum supporting price of long staple cotton and medium-sized cotton to 3900 rupees / weight and 3600 rupees / weight respectively, which will lead to 29% and 18% of the minimum support price in 2012-13 cotton season respectively.

It is reported that the fund will ensure that the price fluctuation of cotton has certain predictability and will not affect cotton growers and ginning plants in the future. The Minister of textile industry of India suggested that the fund be managed by the India Cotton Corp, which could be used when cotton prices fluctuated significantly. In order to maintain this fund, cotton exporters need to pay the fund, and the government can use the money they receive to build the warehouse. The Ministry of textiles of India is studying the tax rate levied by exporters.

This year, India cotton Export volume is expected to reach 1 million 700 thousand tons. India Cotton Advisory Committee (CAB) had predicted that India's cotton exports will reach 1 million 445 thousand tons this year, but the India rupee's sharp depreciation has stimulated India's cotton exports. In view of India's plan to levy taxes on cotton exports, the media interviewed people in India's industry. At present, the view of India's industry is not consistent whether it is cotton export tax or stabilization policy fund.

Rakesh, President of the cotton association of northern India, said in an interview with the media that the export tax on India cotton will raise export costs to a certain extent, but it should be decided according to the magnitude of the tax rate. ASA cotton industry management director Paresh believes that the main determinants of cotton prices in India are cotton consumption, production, demand and supply. Therefore, it is very difficult for the stabilization fund to have a stabilizing effect on cotton prices, but on the contrary, it is even more harmful to India cotton exports. Buyers will be more worried about the rising price of cotton in India.