Gherzi and ICAC present study on the cotton industry in India

(CONNECT) The Zurich-based textile management consulting company Gherzi Textil Organisation AG and the International Cotton Advisory Committee have produced a study focused on the cotton industry in India, as detailed in a statement. The report was published by the Confederation of Indian Textile Industry (CITI) and seeks to investigate the structural dynamics shaping cotton production, pricing, trade policy and the competitiveness of textile value chains at large. The report highlights in particular the negative impact from India’s 11 percent import duty on cotton.

The study advocates for predictable access to imported cotton during supply shortages in order to safeguard the long-term competitiveness of India’s textile and apparel sector. At the same time, it recommends improving fiber quality and aligning domestic market conditions with global standards, which would reportedly help to support both the livelihoods of farmers and industry growth.

"The Gherzi-ICAC report presents a detailed and implementable roadmap for stakeholders to realize the ambitious 350 billion dollar target that we have for the textile and apparel industry by 2030”, comments Shri Ashwin Chandra, CITI Chairman, in the statement.

Among other aspects, the study recommends that the Cotton Corporation of India (CCI) should be authorized as the central institution for the supply of cotton to spinning mills at internationally competitive prices. At the same time, the CCI should explore the possibility of establishing a strategic stockpile of sufficient volume to cover approximately three months of cotton consumption in order to mitigate price fluctuations. Moreover, an institutional mechanism is reportedly required with the aim of stabilizing cotton prices so as to reduce the impact of price speculation on the value chain. ce/nta