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India bans cotton export; China will look to other sources
Mar '12
China imported 809,000 tons of Indian cotton till January in the current cotton season, according to Chinese customs statistics.

The average import volume has been around 150,000 tons per month, which is the expected to be the trend in February too, data for which will be announced on March 10.

The volume of cotton contracts which still needs to be shipped is between 300,000-350,000 tons. However the decision of the Indian government to ban cotton exports with immediate effect has put a big question mark on the pending contracts.

This volume is equivalent to 10-12 days of overall consumption of the Chinese textile industry, considering that it is expected to consume around 8-10 million tons of cotton in 2012.

India's ban on cotton exports will disrupt subsequent import arrangements of some domestic textile enterprises and cotton merchants. They will have to procure from domestic markets or source from other countries.

Zhengzhou cotton futures market too has increased sharply on the news of India's ban on cotton exports.

Fibre2fashion News Desk - China

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