It's All About Export Tax Rebates; &Nbsp; The India Spinning Mill Is Closed For A Day.

Factories protest the government's withdrawal of export incentives and restrictions Cotton export 。

On Monday, the national spinning mill in India stopped production for a day, protesting the government's proposal to revoke export incentives and restrict cotton exports. They say a day of shutdown will lead to huge losses.

The advocate of this strike is the India Textile Industry Federation (CITI). The cotton spinning industry in India is aware of the fact that the cotton textile industry is worth 700 billion rupees, employing more than 700 thousand workers, and exporting about $3 billion a year.

Shishir Jaipuria, chairman of CITI, said in a statement that on Monday, the whole country will stop production and the textile mill will reduce its production capacity by 1/3 from Tuesday.

Basically, there was no export of cotton yarn over the past two months, and domestic demand declined, resulting in a pile of factory cotton stock.

Exports were allowed in April 2011, but accumulated inventories led to global and domestic markets. Cotton yarn price Collapse. Consumers withdraw from the market, because they believe that textile mills spoil their inventories at any cost, and prices will continue to fall.

India occupies more than 25% of the global market, and the supply of India is crucial to the price of global cotton yarn. Production is cut completely on Monday and production will be cut by 1/3 from Tuesday. These measures are expected to reduce inventories to a certain extent.

Mr. Jaipuria said this year's budget proposes a 10.3% levy on the clothing industry. Excise tax At the same time, the recent law is not conducive to the operation of hundreds of printing and dyeing factories of Rupp, which has led to a more severe industrial situation.

In turn, it affects the consumption of yarn and fabric. The industry calls for the resumption of export tax rebates for cotton yarn, which is the most important step for the government to alleviate the crisis.

Nair, Secretary General of CITI, said 3000 factories across the country took part in the strike in.

The report says most of the 2000 factories in Tamil Nadu are closed down. The southern India textile mill closures 29 million spindles, and only 21 million 100 thousand of the spindles of Tamil Nadu make up 62% of the 44 million 600 thousand spindles of the 3336 home textile mills.

Lao Xie commented: India, like China, is a large population and a large textile country. A large number of low-end labor force is concentrated here. The strike in India has to be regarded as a good mirror and a warning for the adjustment of China's textile industry policy. The export tax rebate adjustment involves the most basic employment and eating problems. What brick houses, animal calls and the so-called "hot drum" analysis of the so-called elite in the industry are all hypocritical articles that bring disaster to the nation and the people. China has cut down the export tax rebate 5% of the textile industry at a time? Do you have a tune up to see what happened in the country? It has given us a lesson in China's textile industry. As I have said, it is in line with the basic situation of the industry that it is in line with the basic situation of the industry and in accordance with the aspirations of the vast majority of entrepreneurs who do not want to suddenly "euthanasia". It is in line with China's basic idea of creating a harmonious and democratic socialist system.

You have reason to believe that China's internal security forces and various media have an incomparable ability to deal with and report mass incidents. But you have to believe that, because the absurd theory of a so-called industry member (the export tax rebate reduction has no reference to the textile industry) will surely be sneered at by the industry and be regarded as a joke. If such a policy is implemented, it will not only cause the textile industry to be in turmoil, but also say that the large amount of capital hot money flowing out of the textile industry will have an impact on the entire Chinese capital market and add confusion to the macroeconomic regulation and control strategy that the government manages inflation expectations. (Jiangsu, Zhejiang, textile, chemical fiber, clothing industry is very developed, private capital is highly concentrated).

Therefore, looking back on history, all the seemingly reasonable data appear pale in the face of people's livelihood. All the seemingly unreasonable reasonable reduction of tax rebate policy, under the background of today's tight monetary policy, will always become a bucket of dynamite hanging on the textile industry. All the seemingly correct ideas of beating the head will appear so weak in the face of the fact that large enterprises in the textile industry are facing financial breakage and small businesses are facing the risk of bankruptcy.

Of course, if the central bank liberates monetary tightening policy in the second half of this year, it may be that the risk brought down by the tax rebate to the textile industry will be reduced. But it is undeniable that this shuffling mode will not only wash out small and medium-sized textile enterprises, but also remove a large number of low-end employment groups' sense of trust in the government. If the central bank maintains monetary policy in the first half of the year? I think those friends who have been thinking about their problems are going to buy a piece of tofu if they still can't figure it out.

I still say that: the export tax rebate of the textile industry has been cut down once and for all. Please be cautious, prudent and prudent. India strikes have a basis for releasing channels. Is China even more rational than Indians? Remember that a red paper in the country - "plastic ban" made an instant closure of a plastic bag enterprise called Huaqiang in Henan, and more than 30 thousand workers suddenly "lost their jobs". What's the result? Ten thousand people sit on the freeway... In order to create a harmonious society, I will not write anymore. In that year, I published an article on plastic forbidding in the plastics industry. Of course, the final thing has been satisfactorily resolved. Huaqiang has changed its name to "Hui Qiang". The production of this production, such as the sale of materials, such as PE9455F, one of the plastic film materials, is still booming. However, when we went shopping in the supermarket after that, the former free plastic bag turned into 2 cents. Is it ridiculous? Ridiculous world? So much warning is not worth our vigilance?