Home / Knowledge / News / Textiles / Will China's appetite for cotton imports fall in 2012-13?
Will China's appetite for cotton imports fall in 2012-13?
18
Aug '12
The key question on everybody lips involved in the cotton trade across the globe is whether China will continue to show the appetite to purchase cotton in the 2012-13 season, the way it has aggressively done so in the past few months. A source in the China Cotton Association informed fibre2fashion that the state cotton reserves have touched a massive 7 million tons as of July-end.

Taking in to account cotton stocks lying in bonded warehouses and those with spinners, ginners and traders, the overall Chinese cotton inventory could be around 10-11 million tons. This is more than what China consumes annually. Also considering that Chinese cotton output is expected to rise 6 percent from 2011-12 cotton season to 6.99 million tons in the 2012-13 season, is there space for China to buy more cotton.

“Yes”, says Mr Anand Popat, Secretary of the Saurashtra Ginners Association (SGA).

He explained, “Everybody around the globe involved in the cotton trade is trying to understand the policy of China in carrying such huge cotton inventories. However as per my understanding, the cotton reserves are a long term policy and as a policy, China is investing in cotton stocks instead of keeping its huge foreign exchange reserves in the US dollar.     

“The Chinese government has created reserves not for liquidation, but to stock. If the Chinese government was to start liquidating the cotton stocks, global cotton prices may collapse, which would work against the interests of the Chinese cotton farmers, which the government is trying to support by creating such hugh reserves.

“But if it were to keep on adding stocks it would provide momentum to global cotton prices. As per my estimate, I feel that China will continue to purchase cotton in the new season, but not at the same frantic pace witnessed in the last few months, albeit, a little slower. However nothing can be predicted at this juncture”.

When quizzed if Indian cotton exports to China will maintain the same volume, he said, “Cotton output is expected to rise in China by 6 percent and also grow in other countries like Pakistan, US, and many other cotton growing countries, except India, where it is anticipated to decline.  So, I do not see Indian cotton exports to China in the 2012-13 season reaching those levels attained in the current cotton season”.

“Looking at this scenario, I am personally in favour of continuing the Open General License (OGL) of cotton exports from India. As it is, under an OGL rider, a cotton exporter practically cannot export more than 10,000 bales (1 bale = 170 kg) of cotton per season. Instead, I would suggest the government increase the number of bales an exporter can export to around 25,000 bales”, he concluded by saying.  

Fibre2fashion News Desk - India


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search