India to setup its own Cotton Warehouse in Vietnam to boost Exports
The Cotton Corporation of India is holding surplus stocks of cotton. With the next harvest season approaching, the CCI is trying to boost exports.
To export the current stocks, India will sign Memorandum of Understanding with Bangladesh to export 1.5 to 2 million bales of cotton. One bale is 170 kilo grams. Also, the CCI will set up its own warehouse in Vietnam to boost cotton exports.
The CCI has so far procured 12.1 million bales of cotton. Along with its agent Maharashtra State Cooperative Marketing Federation, CCI was able to sell 900,000 bales of cotton this season.
Why Bangladesh and Vietnam?
India has chosen Bangladesh and Vietnam as they have duty-free access to markets of US, Europe, and China. This gives them an edge over Indian Yarn and garment exporters who pay comparatively higher duties.
Cotton Corporation of India
It is a GoI agency that is engaged in diverse activities related to export, trade, and procurement of cotton. It is also responsible for distribution of cotton and aids in import of cotton. The CCI is governed by the Textile Policy 1985 that was issued by the Ministry of Textiles.
Textile Policy in India
Currently India is working under National Textile Policy 2000. The Government of India announced in 2019 that a new Textile Policy, 2020 will be rolled out in mid of 2020. The New Textile Policy being formulated will focus on technical textiles, manufacturing of apparel and garment, man-made fibre products and exports.