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Total Marks 20
Starting Date Wednesday, April 25, 2012
Closing Date Friday, April 27, 2012
Status Open

INDIA: Imposes ban on all cotton exports


Author: Leonie Barrie | 5 March 2012


The Indian government today (5 March) imposed a ban on all cotton exports from the country, in a move that is likely to put pressure on global supplies and prices. India is the world's second largest producer of cotton, and the decision announced by the Directorate General of Foreign Trade (DGFT) comes into play with immediate effect.


The ban also applies to exports of raw cotton that have already been registered but not yet shipped, and "transitional arrangements will not be applicable," a statement said.


"Export of cotton has been prohibited till further orders," the DGFT added.


A separate statement from the government said the decision to ban further exports "took into account the trend of domestic consumption and depletion of domestic availability."


It added that almost 9.4m bales of cotton have already shipped in the current marketing year, which began on 1 October, against an estimated export surplus of 8.4m bales. The measure also follows recent calls by Indian apparel exporters for steps to curb the country's cotton shipments to China and conserve supplies for local textile mills.


The Chinese government is in the process of building its national stockpiles in a move designed to ensure domestic cotton supplies and help avoid future fluctuations in cotton prices. The scheme began in September and is due to run for seven months until the end of March.


The rebuilding of the Chinese national reserve means that by the end of 2011/12 it might hold as much as a quarter of global stocks, the International Cotton Advisory Board (ICAC) said last week.


However, the Apparel Export Promotion Council (AEPC) claims more than 85% of India's total cotton export in the current year has been shipped to China, and has created "a negative impact" on the industry. AEPC chairman Dr A Sakthivel last month said the local textile industry would be deprived of good quality cotton and would also face shortages if "the export figure is revised further upwards."


The trade group asked the government to keep 2.5m bales of cotton in reserve for local firms. However, it seems the government has now gone even further than an earlier ban introduced back in April 2010, when it put a stop to exports of raw cotton that had not already been registered.


It also imposed monthly limits on the amount of cotton, even under registered contracts, that could be exported, in an attempt to stem rising costs and reverse the shortage of cotton yarn for domestic firms.


Shipments resumed in November that year, but a cap of 5.5m bales was imposed, although this was raised to 6.5m bales in May 2011. Restrictions on cotton exports were eventually lifted from the start of the current season on 1 October 2011.


The government today said its decision comes after higher-than-expected exports in the 2010-11 seasons reduced the amount of stock carried over to 2011-12 from 4.8m bales to 3.3m bales. It also said estimates of India's cotton production in the 2011/12 season, which ends on 30 September, have fallen from 34.5m bales to 34.0m bales. International cotton prices for May delivery are up 4.3% to 92.2 cents a pound on the ICE Futures US exchange in New York.





Discussion Question:


  1. Why Government of India (as an external force) imposing ban on all cotton exports. You are required to discuss the main reasons by keeping in view the above situation.

Be hurry and post any helping material.

To help other students as well.

Views: 1731


Replies to This Discussion

Please Discuss here about this GDB.Thanks

please up load solved Gdb sir

Muhammad Kamran always try to use the proper title of the discussion.thanks 

any body have idea of MGT-603 GDB share your comments

Just an idea

 Organizational Culture

Many definitions of culture give primacy to the cognitive components, such as assumptions, beliefs, and values. Others expand the concept to include behaviors and artifacts, leading to a common distinction between the visible and the hidden levels of organizational culture.

Strong culture

Strong culture means a shared belief in practices, norms and other practices within the organization that helps energize everyone to do their jobs to promote better work environment.

Strategy Implementation

 Strategic Implementation is a process of activating the strategy. It is the sum total of all the activities and choices required for execution of a strategic plan.

 It is the process by which strategies & policies are put into action through the development of programs, budgets and procedures

 Strategy implementation may be said to consist of securing resources, organizing these resources and directing the use of these resources within and outside the organization.


“A strong culture is a big obstacle in new strategy implementation”.


Though the Strong Culture in an organization is the strength of it but it may bounce back a fool proof strategy and its implementation as:

 In large companies, those who implement the strategy likely will be different people from those who formulated it. Thus it is sometimes contradict the current culture hence provoking uneasiness amoung the employees that straightly affects the implementation process.

 In lower level position, managers resist its implementation because they don’t understand why the particular strategy was selected

 Strong culture increases the commitment of employees hence creates uncertainty amoung the staff when they feel any upcoming change in their culture. They start resisting against the implementation process of the strategy.

 Strong Culture endeavors confidence and cohesion amoung the work environment and employees. Working out of your comfort zone is mesmeric as per human nature and this generates obstacles in implementation of strategy


2nd idea


Organizational culture refers to the compilation of the set of values and norms which are shared by the people and groups in a particular organization. It is also defined as the communication process which creates, sends, stores and process information which is observed or examined through words, behaviors and material things. Additionally, it being a set of shared mental assumptions and guide interpretation, it defines the appropriate behavior at any given instance.



 The Pros of an Organizational Culture are:



 ● There is recognition of diversity among employees and managers

 ● There is a just and reasonable treatment for each employees

 ● Due credit is given to an employee's contribution

 ● There is equal opportunity for all employees

 ● Employees can accomplish and achieve their full potential

 ● There is a stronger communication and information dissemination among the employees regarding the company's policies and issues.

 ● It produces dedicated leaders with a vision and purpose.

 ● It will enable the company to compete with similar organization

 ● Increase in efficiency of the employees owe to the company's investment in employees' trainings.

 ● There company will have a sustainable and consistent programs as well as understandable guidelines for the employees.


 The Cons of Organizational Culture


 ● It is criticized as a futile endeavor to "pigeonhole" or categorize the organizational culture itself.

 ● It is disadvantageous to the organization if the employees focus on the company's rules and regulations rather than the real and concrete goals of the company.

 ● It is also unfavorable to new employees joining the team because of the presented culture, which makes improvement and advancement impracticable.

 ● Employees will be slow to react and reply to varying and shifting demographics.

 ● Difficulty for outsider working with the company to figure out what's going on. An example of which is job descriptions are automatically understood by the insiders without having the necessity of explaining it to co-workers from the outside.

Real time Scenario

Today’s world is a world of innovation. Customer’s ever changing demands have built a pressure on companies to innovate new products or services with enhanced values. Thus the need for Intrapreneurial process within the organizations is inevitable. The organizations have to create conducive environment for nurturing the Intrapreneurial attitude among employees. On the wheels of Intrapreneurial attitude, the companies can ensure the generation of innovative ideas to serve the customer’s needs thus in a position to create a sustainable competitive advantage over its competitors.

Point of Discussion (POD)

In your opinion how companies can nourish the Intrapreneurial attitude and culture to win the sustainable competitive advantage in the longer run.


See the attached file please


have you even read the title of the above GDB? its not about culture, its about imposing ban on the cotton exports.

plz GDP ka solution share kar day seniors

all are non one has posted original idea yet..........


g agr sense ho to sub apna khud tayar kar len


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