Indias Cotton Export Restrictions Being Challenged

Textile World magazine just published an article dicsussing Indias export restrictions on cotton. You can read it at www.textileworld.com/articles/2010/October/Indiaxs_Cotton.html . It discusses how every major trade organization is protesting Indias new export policy on cotton fiber and yarns. They are restricting export to keep domestic prices in India low, and selling off the bulk of their finer to China, who has subsidies in place to buffer the higher costs, giving both China and India unfair trade advantage in the worldwide marketplace. As the second largest cotton fiber producer, Indias policies have a major impact on worldwide supply and pricing. Additionally, large state owned textile operations in China are buying up fiber at any price, causing deep concerns in the USA about supply and ever escalating prices.