Indian Ministry of Finance Makes Commitment to Strictly Controlling Cotton Export Quotas

On January 22, Indian Textile Minister Ma Lang confirmed that the country’s total cotton exports will not surpass 550,000 bales this season. The government is closely monitoring the situation, as rising cotton prices have created significant pressure on the domestic textile industry. In response, the Ministry of Finance has pledged to take all necessary measures to safeguard local manufacturers from the growing challenges. According to the latest estimates, India is expected to produce 3.09 million bales of cotton during the 2010-2011 season, while domestic consumption is projected to reach 2.85 million bales. However, with demand continuing to rise and supply remaining tight, many textile mills are at risk of facing severe cotton shortages by June 2011. This could escalate into a broader economic issue, affecting livelihoods across the sector. Given these concerns, experts and industry leaders emphasize the need for strict control over cotton export quotas. Without such measures, the entire textile value chain—ranging from spinning to garment manufacturing—could face serious disruptions. The South Indian Textile Association has called on the textile, commerce, and agriculture sectors to collaborate in maintaining the 550,000-bale export cap. They argue that a coordinated approach is essential to ensure stability and protect both the industry and the economy in the long term.