China purchases 1,000,000 bales of cotton from the USA, it could have been from India! But Indian agriculture now wants to plant other crops like SOY BEAN, to be able to earn more money.
Already the cost per pound for July is up almost 0.15c per pound, but yet futures are still in the 0.70’s, but the projections are this is assuredly going to change to a higher price.
We are already getting predictions from the banking economists that cotton will be fluctuating higher in the next 12 months. Is India prepared not to export competitively, or just try and have lower prices for their own domestic economy?
Many countries globally, such as those in the Sub Saharan countries of Africa, which has DUTY FREE ACCESS into the USA market, and where many Chinese entities, have been setting up spinning mills, dyeing facilities, and sewing operations.
Plus these countries are already servicing the EU, and have the raw materials such as cotton from Uganda and trained labor in Madagascar. These countries are all considered UNDERDEVELOPED NATIONS, by the USA under AGOA (the African Growth Opportunity Act), Free Trade Agreement.
This means they can import raw materials from any 3rd party countries into their country Duty Free, and export the finished apparel product into the USA DUTY FREE.
[bleft]Time is moving so fast, and so can industry regions; the needs of the USA market is so large it can make or break a manufacturer so fast, that it can reduce growth rapidly.
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Though they do have the people to do the production, they are still far behind the rest of the Free Trade Agreement countries of the USA, but they are now moving much faster.
It could mean that because they have lower labor cost, they could take away business from India. India was supposed to make big volume gains in the Textile/Apparel Industry, but now for how long? True India exports have grown, from some of what China has lost, but not as fast as all the pundits projected.
I have stated before that India has both the capacity, and growth into Higher Education which is wonderful for a growing society, but they still have an ever growing population of poor, that can be trained, and better themselves in producing products in the textile/apparel industry for many years to come.
Time is moving so fast, and so can industry regions; the needs of the USA market is so large it can make or break a manufacturer so fast, that it can reduce growth rapidly.Since you have both the opportunity for long-term growth in highly desired new product of the hi-tech industry (IT industry), and the people for long-term growth in the Textile/Apparel industry too, a focused effort must be taken with Government, Academia, and Private Corporate Entrepreneurs working together to maintain all industries and be a leader, not only of assembly, but the engineering of new product lines for global consumption.
It is time to put forward these efforts for now and the future.
