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

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Textiles | On 23rd Jan 2017

MagnaColours develops new sustainability standard

MagnaColours, manufacturer of printing inks and ink bases, discharge...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

ZDHC adds six new contributors for sustainability

Zero Discharge of Hazardous Chemicals (ZDHC) programme has added six...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kai Poehler
Voith Paper GmbH & Co. KG

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search